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 …
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