Thailand’s packaging company to expand business in Vietnam

Illustrative image (Photo: Packagingworldinsights)

Bangkok-based SCG Packaging Plc (SCGP) has announced that it is acquiring a 70% stake in Starprint Vietnam JSC (SPV) for 1.53 billion BTH (44.5 million USD) to take advantage of positive prospects in Vietnam.

The asset acquisition is expected to be completed in the third quarter this year, helping the company improve product sales, including offset folding cartons, rigid boxes and luxury packaging products.

Wichan Jitpukdee, Chief Executive of SCGP, said that the company will continue to expand its business into markets with good business opportunities and Vietnam is a high-potential market with growing demand for packaging products.

SPV has a prominent client base and long-term track record of commercial relationships with renowned multinational and national companies, boasting a portfolio linked to high growth and fast-moving consumer products, he said.

The Vietnamese company has a combined capacity for 16,500 tonnes of offset printing a year and 8 million pieces of rigid boxes per year, with two manufacturing facilities located in Long Binh (Amata) Industrial Zone in the southern province of Dong Nai.

In fiscal 2022, SPV recorded 43 million USD in revenue, net profit after tax of 4 million USD, with assets worth 19 million USD.

SCGP expects to spend an investment budget of around 18 billion THB (524 million USD) in 2023, with 50% allocated to merger and partnership projects. The remainder will support business expansion and maintenance projects./.