With its enticing business and investment conditions, Vietnam’s packaging sector has seen an array of M&A deals in recent years, Photo: Duc Thanh Thailand’s Siam Cement Group PLC (SCG) last month made a big splash in the market by entering into a 70-per-cent share purchase agreement with Duy Tan Plastics JSC. The former’s subsidiary SCG Packaging (SCGP) is to work with its Vietnamese partners under a 10-billion-baht ($332 million) investment to expand its packaging solution business in Vietnam, where demand for such products is growing. The investment is part of a 20-billion-baht ($664 million) budget for business expansion and merger and acquisition (M&A) plans. SCGP chief executive Wichan Jitpukdee told The Bangkok Post that the company has been expanding its operations in Vietnam and generated a revenue growth of more than 10 per cent annually. Last year, SCGP announced the closing of its consolidation with Sovi Packaging JSC in the southern province of Dong Nai’s Bien Hoa city, a company specialising in corrugated boxes and offset laminated packaging. In 2015, SCGP expanded its flexible packaging business by acquiring an 80 per cent stake in Tin Thanh Packing JSC, one of the top five manufacturers of such wares in Vietnam. SCGP also invested in its packaging paper production base at Vina Kraft Paper Co., Ltd. to meet the rapid demand in the country. The enterprise has holdings in a clutch of other domestic producers including Alcamax Packaging, Packamex Packaging, AP Packaging, and New Asia Industries. Besides this, global investors like SCGP are also shifting their focus to the market, thus driving their sustainability agenda forward. The company has been implementing its environmental social governance strategy in the past few years, thereby focusing on corporate social responsibility towards the environment and society. SCGP is also a pioneer in green manufacturing, with various innovations ranging from paper to flexible packaging. With …
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