Thai Containers Group, a JV of Thailand's SCG Paper and Japan-based Rengo, acquires 90% stake in Indonesian containerboard producer Primacorr for 395M baht, boosting Thai Containers' annual production capacity by 37,000 tonnes, to 1.013 million tonnes
September 17, 2013
– Thai Containers Group in SCG Paper has acquired a 90% stake in Primacorr - a producer of corrugated containers in Indonesia. This latest acquisition is aiming at expanding packaging chain business, in line with SCG’s vision to become an ASEAN sustainable business leader.
Mr. Kan Trakulhoon, President and CEO of SCG announced that Thai Containers Group Company Limited or TCG, a 70:30 joint venture between SCG Paper Public Company Limited and Rengo Company Limited (Japan), has signed the Share Purchase Agreement and completed an acquisition of 90% stake in PT Primacorr Mandiri or Primacorr, valued at 395 MB. The remaining 10% stake is held by existing shareholders.
“SCG Paper focuses on two strategic chains, Packaging Chain and Fibrous Chain. This investment in Primacorr by Thai Containers Group is part of the expansion in the Packaging Chain, and is SCG’s first strategic entry into the Indonesian packaging market, which is expected to grow rapidly, driven by both local consumption and foreign investments.” Mr. Kan said
With this latest investment, TCG’s total production capacity will increase from the existing 976,000 tons per year to 1,013,000 tons per year from the production base in ASEAN including Thailand, Malaysia, Singapore, Vietnam, and Indonesia.
Primacorr is a producer of corrugated containers with a combined capacity of 37,000 tons per year. Its plant is located in Tangerang city, approximately 40 kilometers west of Jakarta. Primacorr registered sales of 460 MB in fiscal year 2012.