The Siam Cement Public Company Limited (SCC) announced that United Pulp and Paper Co., Inc. (UPPC), the Philippines, a 99.7% subsidiary of SCG Packaging Public Company Limited (SCGP), has entered into a conditional share subscription agreement with Rengo Co., Ltd., Japan (Rengo) whereby Rengo will subscribe to the newly issued shares at the total value of approximately 2,500 million baht. Therefore, Rengo to hold 25% of stake in UPPC while SCGP will hold 74.7%. The transaction is expected to be completed in the second quarter of 2020.
UPPC is the leading packaging paper manufacturer in the Philippines with the total sales of approx. 3,920 million Philippine Peso (or approximately 2,361 million Baht) for the first 9-month of 2019. UPPC is in the process of expanding the manufacturing capacity from 230,000 tons per year to 450,000 tons.
Rengo is a leading Japanese packaging manufacturer with reputable and fully-capable technical expertise. The new partnership will allow UPPC to expand its sales and customer base in the Philippines, while strengthen SCGP’s packaging chain in ASEAN.