The Siam Cement Public Company Limited (SET: SCC) announces on Monday that the Board of Directors Meeting of SCG Chemicals Public Company Limited (SCGC), a wholly owned subsidiary of SCC has approved the investment project of A.J. Plast (Vietnam) Company Limited (AJVN), a joint venture between SCGC and A.J. Plast Public Company Limited (SET: AJ), who hold 45% and 55% stake, respectively, to produce biaxially oriented polyethylene terephthalate film (BOPET) in Vietnam.
Earlier in October 2020, SCC announced the joint venture by SCGC in AJVN’s biaxially oriented polypropylene film(BOPP) project and expected to commercialize in the first half of 2023. The total equity value of this investment is 700 million Baht, of which SCGC’s 45% equity investment is 315 million Baht.
The BOPP and BOPET projects reaffirm SCGC ongoing strategic investment and commitment in Vietnam, particularly value-added products designed to meet the growing consumer demand by providing raw material to serve the flexible packaging sector.
This particular BOPET investment is through SCGC by means of capital investment in AJVN, maintaining SCGC’s shareholding proportion in AJVN at 45%. The total equity value of this investment is 22.7 million USD or approximately 851 million Baht, of which SCGC’s 45% equity investment is 10. 2 million USD or approximately 383 million Baht. The expected commercialization is in the first half of 2024.
As of June 30, 2022, SCGC total non-current asset in Vietnam was approximately 130 billion Baht, which included, but not limited to, Long Son Petrochemicals Complex (Olefins chain), TPC Vina (Vinyl chain), and Binh Minh Plastics (Vinyl chain – downstream).