SCG buys into Batico in Vietnam
Siam Cement Group (SCG) has paid 1.5 billion baht to acquire 80% of Vietnam's Tin Thanh Packing Joint Stock Co (Batico).
Kan: Eyeing Vietnam's packaging potential
The deal was made through SCG subsidiary TC Flexible Packaging Co (TCFP), said Kan Trakulhoon, group chief executive and president.
TCFP is 52.2% owned by another SCG subsidiary, SCG Packaging Plc.
Batico is one of Vietnam's top five packaging producers, making 230 million square metres of packaging per year including value-added flexible packaging, Mr Kan said.
Its factory is located near Ho Chi Minh City, close to industrial factories that need packaging for their goods, and serves rising demand throughout Asean.
"In 2014, Batico generated 1.44 billion baht in revenue," Mr Kan said.
Roongrote Rangsiyopash, who has been picked to succeed Mr Kan as SCG president, said the acquisition of Batico was aimed at expanding the group's paper and packaging operations in Asean.
"Our goal is to be Asean's leading packaging maker," Mr Roongrote said.
His tenure as president of subsidiary SCG Paper ends today, and Mr Kan is expected to hand him the reins to the group gradually during the second half.
Mr Kan said SCG had been expanding its paper and packaging business in Vietnam for years due to the country's packaging potential, with 6% annual growth in the industry.
This latest investment expands the group's regional footprint, particularly in the manufacture of flexible packaging with demand rising in the diaper, refill items and food sectors.
The Batico acquisition makes SCG Packaging the region's leading packaging company, with two flexible packaging factories in Thailand and two in Vietnam.
Siam Cement shares (SCC) closed yesterday on the Stock Exchange of Thailand at 520 baht, up two baht, in heavy trade worth 1.13 billion baht.