This deal will help SCGP expand its customer base in the food service sector, retail and wholesale businesses, restaurants and fast-food restaurants in the UK, Europe and North America, as well as help expand its market base in Asean.
Wichan Jitpukdee, SCGP’s chief executive officer, said the company is expanding its food packaging business in line with rising demands.
SCGP has a manufacturing base in Thailand and has been producing foodservice packaging products such as paper straws under the Fest brand in response to demands for safe and eco-friendly food packaging.
In 2018, it expanded its production base to Malaysia buy acquiring shares of Interpress Printers Sendirian Berhad (IPSB), a leading producer of food packaging made from paper. IPSB supplies packaging solutions to restaurants and fast-food companies in Asia.
With lifestyles changing due to the Covid-19 outbreak, consumers are more inclined towards taking meals home or to the office or getting food delivered. And this trend is giving the food packaging industry reason to expand.
Coupled with the forecast that the food and beverage industry in Asean expected to expand 6 to 7 per cent annually between 2019 and 2024, the demand for food packaging is bound to rise.
As a consequence, SCGP on Wednesday acquired a 100 per cent stake in Go-Pak UK Limited (Go-Pak).
A leading provider of food packaging solutions in the UK, Europe and North America, Go-Pak is headquartered in Bristol and has a production base in the south of Vietnam – two factors that will contribute positively to the company’s market and customer base expansion plans.
Go-Pak is the distributor of more than 250 foodservice packaging products, including plates, forks and spoons, and cups and glasses, made of polymer and other degradable materials. It has a production capacity of 4,000 million pieces per year and a global network of acquisition agents.
Its customer base includes food service providers, retailers and wholesalers in food-related businesses, fast-food restaurants, and food caterers. Between the last quarter of 2019 and the third quarter of 2020, Go-Pak earned £68.7 million (Bt2.8 billion) and its assets are valued at £40.2 million.
“Our investment will boost our potential and strengthen our food packaging production and marketing capacities to cope with our enlarged customer base from the UK, Europe and North America. It will also enable us to provide more diverse food packaging solutions for the expanding Asean market. With more than 40 years of experience in the packaging business, SCGP will be able to help strengthen Go-Pak’s operations,” Wichan said.
Published : January 13, 2021
By : The Nation