SCG Group buy 80 per cent stake in Vietnamese packaging company

August 03, 2015 | 08:00

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On July 29 Thailand’s Siam Cement Group (SCG) signed a deal to buy an 80 per cent stake in Tin Thanh Packaging Joint Stock Company (Batico).

The purchase aims to expand SCG’s operation in packaging as well as help the company keep its leading position in distributing packaging in the Southeast Asian market.

Batico is a partner of multinational corporations such as Nestlé, Bayer and Wal-Mart as well as domestic enterprises, namely Kinh Do Corporation, Trung Nguyen Group, Vietnam Food Industries Joint Stock Company (JSC) and Vinamit JSC.

Batico’s factory covers an area of 18,500 square metres in Duc Hoa district, Long An province. Batico plans to construct another 55,000 square metre factory in the near future.

In August 2013 SCG bought an 85 per cent stake in Prime Group, a Vietnamese tile manufacturer, at the price of $240 million. The sale made SCG the world’s largest ceramic tile manufacturer.

Conglomerate SCG operates in three major sectors, namely cement, construction materials (petrochemicals) and packaging with over 200 subsidiaries, providing employment for more than 51,000. As of the end of June, SCG’s total assets was estimated at $14.83 billion.

Operating in Vietnam since 1992, SCG currently has 22 subsidiaries with 6,500 employees. As of June, the total assets of its subsidiaries hit VND15.1 trillion ($716 million). In the first six months of the year SCG’s revenue was recorded at VND6.3 trillion ($288 million).

By By Kim Oanh

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