Thai Containers Group--JV between Rengo and SCG Paper Public--completes investment for 22% stake in flexible packaging manufacturer Prepack Thailand
May 22, 2014
– Rengo Co., Ltd. (Head Office: Kita-ku, Osaka, Chairman, President & CEO: Kiyoshi Otsubo) announces that Thai Containers Group Co., Ltd. (TCG), a joint venture between Rengo and SCG Paper Public Company Limited (a subsidiary of The Siam Cement Public Company Ltd.) has completed an investment for a 22% stake in Prepack Thailand Co., Ltd. (Prepack), a leading flexible packaging manufacturer in Thailand, through TCG’s subsidiary.
Flexible Packaging, made from films, is mainly used for food and consumer products, and the packaging demand in Southeast Asia is expected to surge. Prepack operates two factories in Samut Songkram province and Rayong province with annual production volume of 14,000 tons. The investment in Prepack is a key step for Rengo’s global strategy in flexible packaging business.
Furthermore, TCG is constructing a flexible packaging factory in Vietnam with annual production volume of 3,000 tons. The new factory is expected to commence operation by June 2014.
The investment in flexible packaging business in the overseas market is an important strategic focus for the overseas business of the Rengo Group—which aims to be a “General Packaging Industry” (GPI)—and Rengo will work to further enhance its packaging supply system in the overseas market through synergy and in collaboration with group companies in Japan.