Subsidiary of Siam Cement Group acquires 80% of Tin Thanh Packing Joint Stock Company.
The TC Flexible Packaging Company Limited, a subsidiary of the Siam Cement Group (SCG), has acquired an 80 per cent stake in the Tin Thanh Packing Joint Stock Company (Batico), SCG announced on July 29. As SCG has been actively expanding its packaging business portfolio in Vietnam, this investment will strengthen its position as a leading total packaging solutions provider in ASEAN.
Batico has a history of some 20 years and is one of five largest plastic packing companies in Vietnam, with an 18,500 sq m factory of international standard in Duc Hoa district in the Mekong Delta’s Long An province. It also has print and manufacturing lines from Germany, Japan and South Korea. Its international customers include Nestle, Bayer, Henkel, Dupont, CP, and Walmart, while its domestic customers include Kinh Do, Trung Nguyen, Gau Do, Vifon and Vinamit. The company is also building a second factory, on 55,000 sq m. It won the Asian Packaging 2014 prize in Kuala Lumpur, Malaysia.
SCG also reported revenue in the second quarter of $3.42 billion, a 9 per cent decline year-on-year but a 4 per cent increase quarter-on-quarter. Profit was $417 million, a 63 per cent increase year-on-year and a 25 per cent increase quarter-on-quarter, thanks to much higher global market margins in the chemical business as a result of a significant decline in prices for raw materials and crude oil.
Even though its businesses in the domestic cement-building materials and packaging market continue to slow down there are signs of recovery for the second half of the year. SCG’s revenue for the first half stands at $6.769 billion, a 10 per cent decline year-on-year. Profit in the first six months was $757 million, a significant increase of 48 per cent year-on-year.