VIETNAM: Thai company to buy 70 % of Vietnamese plastic giant
A subsidiary of Thai conglomerate SCG Group is set to buy a 70 percent stake in Vietnam’s Duy Tan Plastics. SCG Packaging Public Company Ltd (SCGP) said in a statement the deal, whose value it did not disclose, is expected to be completed in mid 2021.
Duy Tan is Vietnam’s largest producer of rigid plastic packaging products such as shampoo and food containers, of which it sells 80 percent locally and exports the rest to the U.S. and some other countries. It also makes plastic housewares products and has a total annual capacity of 116,000 tons. Last year it earned revenues of VND 4.7 trillion (USD 204 million).
The investment in Duy Tan is part of SCGP’s expansion across Southeast Asia. It has 43 packaging plants in Vietnam, Indonesia, Malaysia, the Philippines, and Thailand. It plans to invest THB 10 billion (USD 333 million) in its Vietnamese packaging solutions business. Chief executive Wichan Jitpukdee said the company has consistently been increasing its investment in Vietnam, achieving revenue growth of more than 10 percent a year.
Source: Daily “The VN Express”, Hanoi; 18 Feb 2021
(Syed Rashid Ali, Karachi, Pakistan)