Thai giant SCG Packaging invests in Vietnam company
SCG Packaging Public Company Ltd (SCGP) has signed a joint venture agreement with Duy Tan Plastics Manufacturing Corporation (Duy Tan), a manufacturer of rigid plastics in Vietnam. In the agreement, SCGP will buy a 70% stake in Duy Tan, expected to be completed mid-2021.
Duy Tan has a revenue of approximately THB 6,100 million (UD$203 million) and has a production capacity of approximately 116,000 tons per year. It has a multinational customer base for its rigid plastics packaging. It also manufactures plastic household utensils in Vietnam, known locally as “DuyTan”.
The investment in Duy Tan is part of SCGP’s expansion across Southeast Asia. The expansion follows the company's strategy to diversify its products and support the growing consumer market over the past 10 years.
Duy Tan joins other Vietnamese companies under the SCGP umbrella, including Vina Kraft Paper Co., Ltd and Tin Thanh Packing Joint Stock Company.
In addition, as recently as January 2021, SCGP acquired a 94.11% stake in Bien Hoa Packaging Joint Stock Company, a leading packaging manufacturer. SCGP also acquired a 100% stake in UK-based Go-Pak Ltd., a foodservice provider in the UK, Europe and North America. Go-Pak has many manufacturing facilities located in the southern part of Vietnam.