Bangkok-based SCG Packaging Plc (SCGP) has announced that it is acquiring a 70 per cent stake in Starprint Vietnam JSC (SPV) for 1.53 billion baht (US$44.5 million) to take advantage of positive prospects in Viet Nam.

The asset acquisition is expected to be completed in the third quarter of this year, helping the company improve product sales, including offset folding cartons, rigid boxes and luxury packaging products.

Wichan Jitpukdee, Chief Executive of SCGP, said that the company will continue to expand its business into markets with good business opportunities and Viet Nam is a high-potential market with growing demand for packaging products.

SPV has a prominent client base and long-term track record of commercial relationships with renowned multinational and national companies, boasting a portfolio linked to high growth and fast-moving consumer products, he said.

The Vietnamese company has a combined capacity for 16,500 tonnes of offset printing a year and eight million pieces of rigid boxes per year, with two manufacturing facilities located in Long Binh (Amata) Industrial Zone in the southern province of Dong Nai.

In fiscal 2022, SPV recorded $43 million in revenue, net profit after tax of $4 million, with assets worth $19 million.

SCGP expects to spend an investment budget of around 18 billion baht ($524 million) in 2023, with 50 per cent allocated to merger and partnership projects. The remainder will support business expansion and maintenance projects. — VNS