SCG Packaging Public Company Limited (SCGP) announced that on February 9, 2021, the company has entered into the signing of a share purchase agreement to acquire a 70% stake in Duy Tan Plastics Manufacturing Corporation (Duy Tan). The purchase will be through SCGP’s wholly owned subsidiary, and further transaction details will be provided in mid-2021, upon deal closing and regulatory approval in Vietnam. The remaining 30% share in Duy Tan will be held by its existing owners, who will continue to actively support and help manage the company together with management from SCGP.
Duy Tan is Vietnam’s top producer of rigid plastic packaging products, with B2B sales to multinational companies and local brand owners of consumer/FMCG products. The company also manufactures branded home products, such as food wares and containers, which are sold under the “DuyTan” brand through B2C channels of over 16,000 retail outlets, wholesalers and supermarkets. The majority of Duy Tan’s products are sold in Vietnam, while approximately 20% are exported to the United States and globally. Duy Tan’s facilities are highly integrated, ranging from color master batching, mold design and production, and rigid plastic manufacturing.
In 2020, Duy Tan recorded revenue of 4,700 billion VND (approximately 6,100 million Baht), and had assets of 5,000 billion VND (approximately 6,500 million Baht) at the end of 2020. Duy Tan’s annual capacity is 116,000 tons of rigid plastic packaging and plastic housewares products.
This investment in Duy Tan is an expansion of SCGP’s rigid plastic packaging business across ASEAN, and strengthens the company’s capability to dually serve the FMCG producers and the consumers in Vietnam, with a full suite of product offering, both polymer-based and paper-based packaging. Customers will have increased selections of materials offerings for better optimization of solutions for each specific requirement, including access to SCGP’s post-consumer recycled (PCR) capabilities, which are important elements in SCGP’s ESG and Circular Economy commitments.
Moreover, this investment can achieve greater synergy value, not only through combined customer portfolio and cross-selling, but also from leveraging operational strength and resource pooling of both parties. This reaffirms SCGP’s commitment and belief in Vietnam’s strong economic growth prospects, while supporting the vibrant consumer sectors’ supply chain.
SCGP is the customer-oriented comprehensive packaging solutions provider in ASEAN offering fiber-based packaging, performance & polymer packaging and other diversified solutions with 43 facilities across Vietnam, Indonesia, Malaysia, the Philippines and Thailand.