Thailand’s SCG Packaging completes 70% stake acquisition in carton maker Starprint Vietnam

SCG Packaging (SCGP), under Thailand’s giant Siam Cement Group (SCG), has completed a 70% stake acquisition of Vietnam’s Starprint Vietnam JSC for VND676.8 billion ($27.8 million).

In a Monday filing with the Stock Exchange of Thailand, SCGP said the transaction will be made through its wholly owned subsidiary SCGP Solutions (Singapore) Pte. Ltd.

Starprint Vietnam is a leading offset folding carton packaging manufacturer in Vietnam with an annual combined capacity of 16,500 tons of offset printing and 8 million pieces of rigid boxes. The firm operates two manufacturing facilities in the Long Binh (Amata) Industrial Zone, Dong Nai province.

The latest acquisition will enhance SCGP’s packaging solutions capabilities to serve a growing customer base in Vietnam and the ASEAN, while reinforcing chain integration across the region, a company statement said.

Starprint Vietnam will become SCGP’s first rigid box facility in ASEAN and the Thai company’s first offset folding carton production facility in Vietnam.

SCG is a leading Southeast Asian business in the sectors of cement-building materials, petrochemicals and packaging, with over 200 subsidiaries and 57,000 employees. After entering Vietnam in 1992, it has set up several subsidiaries in the country that employ over 16,000 people.

According to its latest financial report, SCG earned revenues of THB379.03 billion ($10.67 billion) in the first nine months of this year, down 15% year-on-year, including THB31.98 billion ($900.6 million) from Vietnam, down 30%, according to its latest report.

Thailand remained SCG’s biggest source of revenue, accounting for 57% of the total. Among overseas markets, Vietnam was the largest, followed by Indonesia with THB26.93 billion ($758.3 million).