Scg

SCG and Duy Tan reached the deal on February 9 A few days ago, the Vietnamese packaging sector was shocked by the news that Duy Tan decided to sell 70 per cent of its stakes share to SCG after many years of negotiation. The move took place right after the Thai player announced ownership of another local company, Bien Hoa Packaging JSC. The two sides remain silent about the particulars of the deal. Nevertheless, according to a source of doanhnghieptiepthi.vn , SCG plans to initially purchase 70 per cent of five of Duy Tan’s 22 subsidiaries which focus on plastic and packaging. Last year, along with the investment in Bien Hoa Packaging JSC, SCG also acquired UK-based Go-Pak Ltd., one of the leading foodservice providers in England, Europe, and North America which also has many manufacturing facilities in the southern part of Vietnam. Over the years, SCG has been constantly pouring capital into the country. As of the end of last third quarter, its total investment in Vietnam reached nearly $4.2 billion, up 59 per cent on-year. With this figure, SCG has been one of the leading overseas investors in Vietnam, along the likes of Samsung, Lotte, LG, Intel, and Microsoft. In comparison with the region, the Vietnamese packaging industry has great potential for growth. According to the Vietnam Packaging Association (VINPAS), the sector’s annual growth could reach up to 15 per cent, as much as a triple of the regional growth rate, which is about 4-5.5 per cent annually. Meanwhile, the Thai packaging industry in on a decline, reflected by the decelerating annual growth figures. According to ResearchandMarket.com , the compound annual growth rate of the sector in 2018-2023 is forecast to be 3 per cent, while in previous years it was about 5 per cent. “Decline in packaging will be largely influenced by the fall in the demand for tobacco and tobacco products,” noted the website. Last April, the Thai packaging manufacturer also lowered the …

[Read more...] about Thailand-based SCG sets Vietnam as backup packaging market

SCG headquarters in Bang Sue District, Bangkok, Thailand. — Photo courtesy of SCG After buying Duy Tan Plastic Corporation, Thailand’s Siam Cement Group (SCG) is cementing its domination of Viet Nam’s plastic production industry. Under the contract signed on February 9 via a virtual conference, Duy Tan will sell 70 per cent of its shares in five of total twenty-two subsidiary companies, including Duy Tan Plastic Manufacturing Corporation and Duy Tan Long An Corporation, to SCG’s SCG Packaging, Duy Tan said. Duy Tan Plastic is a leading company in the plastic goods market in Viet Nam with revenue of VND4.7 trillion in 2020. It has nearly 1,000 commodities units and 16,000 distribution agents across the country. The company’s annual capacity reaches 116,000 tonnes of hard plastic packaging and plastic goods. SCG, Thailand’s largest cement producer, will buy the stakes over three years, starting from 2021. The deal takes a long time as it is based on business results, Duy Tan Plastic said. Through the deal, SCG and Duy Tan Plastic want to create a solid foundation for a completed supply chain. Duy Tan Plastic aims at developing hard plastic packaging products, plastic goods and expanding export markets, while the investments help SCG Packaging broaden its hard plastic packaging businesses in ASEAN, especially strengthen capacity to serve FMCG producers and consumers in Viet Nam. The deal is a part of SCG’s investment plan worth 10 billion baht (US$334 million) to extend its businesses in Viet Nam that has big and growing demands in plastic packaging products. Wichan Jitpukdee, CEO of SCG Packaging, said that the company will keep investing in Viet Nam, resulting in revenue growth of over 10 per cent each year. Dominating Viet Nam’s plastic production industry The plastic production industry in Viet Nam has around 3,300 enterprises with total value of approximately US$18 billion. The upstream sector of this industry includes petrochemical …

[Read more...] about Thai conglomerate SCG now dominates Viet Nam’s plastic production industry

The Hanoitimes - This will be Vietnam's first integrated petrochemical complex once it is commissioned in 2023. Thai conglomerage SCG Group has approved a plan to inject an additional US$1.386 billion into its Long Son Petrochemical Complex project, increasing the total investment to US$5.1 billion, according to Vietnam’s Ministry of Planning and Investment. Long Son petrochemical complex is scheduled for commercial operation by 2023. Photo: Long Son The capital hike is aimed to improve the competitiveness and economic results by adjusting technical specifications and efficiency. The project, which was previously known as Southern Petrochemical Complex, has seen changes to investors several times, from PetroVietnam to Vinachem, Vina SCG Chemicals Co., Ltd., and then Thai Plastic and Chemicals Pcl. In June 2018, the complex became wholly owned by SCG Group after the company completed the purchase of a 29% stake from PetroVietnam. Kicked off in early 2018, the petrochemical complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of two million tons per year, enabling it to substitute imported polyolefin products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included, according to Vietnam Investment Review. Located in Long Son commune in the southern province of Ba Ria-Vung Tau, 100 kilometers from Ho Chi Minh City, this integrated petrochemical complex will be the first of its kind in Vietnam once it is commissioned in 2023. This integrated petrochemical complex will have a total olefin production capacity of 1.6 million tons per year. SCG signed loan agreements worth more than US$3.2billion with six leading financial institutions namely Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of …

[Read more...] about SCG adds US$1.4 billion to Vietnam petrochemical project