SCGP completes acquisition of 70 per cent stake in Starprint Vietnam

This acquisition will enhance SCGP's packaging solutions capabilities for its enlarging customer base in ASEAN.

Wichan Jitpukdee, CEO of SCGP, said that the company has successfully completed the acquisition of a 70 per cent stake in Starprint Vietnam JSC (SPV) to expand its footprint in the offset folding carton packaging industry in Vietnam, a market with high growth potential.

The investment will be made through SCGP Solutions (Singapore) Pte. Ltd., a wholly owned subsidiary of SCGP, with a total investment of approximately $27.7 million. SPV’s financial performance will be consolidated from January 2024 onwards.

Starflex Plc., a prominent flexible packaging company based in Thailand, holds a 25 per cent stake in SPV while the remaining 5 per cent stake is held by a previous shareholder of SPV.

SPV has a combined capacity of 16,500 tonnes of offset printing and 8 million rigid boxes per year from two manufacturing facilities located in the Amata Industrial Zone in Dong Nai. Its clients consist of domestic and multinational companies, primarily linked with the high-growth and fast-moving consumer goods sector.

In 2022, SPV recorded revenue of around $41.5 million, a net profit after tax of roughly $3.8 million, and total assets of about $24.7 million.

"SPV will be SCGP's first high-quality rigid box facility in ASEAN and our first offset folding carton production base in Vietnam. The addition of offset and rigid box offerings to SCGP’s portfolio will greatly enhance our capability to provide integrated packaging solutions to meet the rising demand in Vietnam and across ASEAN. This will also drive the synergy among our regional operations," Jitpukdee concluded.

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