SCG Packaging (SCGP), a packaging paper and corrugated containers producer, has announced the completion of a 90% stake acquisition in VEM Thailand (VEM-TH).
The deal was carried out by SCGP’s wholly owned subsidiary SCGP Solutions (Singapore).
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The investment for this majority stake acquisition is capped at Bt146.2m ($4m).
The merger and partnership decision aligns with SCGP’s strategic direction to bolster its healthcare packaging and supplies business.
VEM-TH, located in Rayong, Thailand specialises in manufacturing high-performance polymer injection moulding parts.
The company serves sectors such as medical, electrical, and others across various markets, including domestically, the US, and China.
The merger provides SCGP with access to VEM-TH’s quality management system for medical devices (International Organization for Standardization13485) and certified cleanrooms of class 8 and class 7.
This ensures intricate and delicate processes at every production stage, including the development of customised moulds.
SCGP emphasises its commitment to sustainable growth and innovation, offering a range of products from fibre packaging to healthcare packaging and supplies.
The VEM-TH acquisition represents only 0.06% of SCGP’s total assets as of 31 March 2024, and 0.66% when combined with acquisitions from the previous six months.
SCGP will integrate VEM-TH’s financial results into its reports from July 2024.
In December last year, SCGP announced it was acquiring a 70% stake in offset folding carton producer Starprint Vietnam.
