Thai company to buy 70 pct of Vietnamese plastic giant

SCG Packaging Public Company Ltd (SCGP) said in a statement the deal, whose value it did not disclose, is expected to be completed in mid-2021.

Duy Tan is Vietnam’s largest producer of rigid plastic packaging products such as shampoo and food containers, of which it sells 80 percent locally and exports the rest to the U.S. and some other countries.

It also makes plastic housewares products and has a total annual capacity of 116,000 tons. Last year it earned revenues of VND4.7 trillion ($204 million).

The investment in Duy Tan is part of SCGP’s expansion across Southeast Asia. It has 43 packaging plants in Vietnam, Indonesia, Malaysia, the Philippines, and Thailand.

It plans to invest 10 billion baht ($333 million) in its Vietnamese packaging solutions business.

Chief executive Wichan Jitpukdee said the company has consistently been increasing its investment in Vietnam, achieving revenue growth of more than 10 percent a year.

In December, it acquired a 94 percent stake in Bien Hoa Packaging, a producer of corrugated paper and offset laminated packaging.

In 2015, it had invested in Tin Thanh Packing Joint Stock Company, one of the five largest flexible packaging producers in Vietnam.

In 2009, it had established Vina Kraft Paper in Binh Duong Province to produce 500,000 tons of packaging paper annually.