SCG Packaging Plc (SCGP) is taking over Peute Recycling BV, the largest packaging material recycling company in the Netherlands, in a move to strengthen its recycling business.
The company offered to buy a 100% stake in Peute for €78.1 million, around 2.87 billion baht, said Wichan Jitpukdee, chief executive of SCGP.
"The acquisition is important to our long-term strategy which is aimed at strengthening all levels of packaging businesses, from raw material sourcing to upstream and downstream manufacturing," he said.
SCGP expects this deal to increase the amount of paper and plastic materials for recycling by around 1 million tonnes a year, up from 4.4 million tonnes at present.
"The increase will go together with our expansion of packaging production capacity," said Mr Wichan.
SCGP said the deal would also support its competition in the recycling business because it will own a recycling centre, with used paper and plastic materials to be sourced within the Netherlands and overseas.
Peute is a well-known recycling company in the Netherlands, with a strong relationship with customers for more than 60 years.
With solid operations and the ability to continue business growth amid economic challenges in Europe, Peute recorded revenue of €249 million, around 9.16 billion baht, in 2021.
The company racked up a profit of €3.2 million, around 120 million baht, with assets worth €52 million, around 1.93 billion baht, at the end of last year.
Peute is currently able to source 1 million tonnes of paper and 0.1 million tonnes of plastic materials for recycling annually at its factory in Dordrecht.
The company is going to relocate its facility to Alblasserdam, near Rotterdam port, in order to double its sourcing capacity and improve cost management.
SCGP operates 56 manufacturing facilities in Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK and Spain.
SCGP said its merger and partnership plans will play a key role in helping the firm attain its revenue target and serve growing demand for packaging products in Thailand and overseas.
The company expects its revenue to increase to 140 billion baht this year, with a constant growth of revenue by over 10% a year.