SCGP continues to turbocharge the integrated packaging solutions business in ASEAN to resonate with ascending needs of customers for packaging that prioritizes convenience. In this, SCGP has achieved recent expansion through the acquisition of flexible packaging assets from Cyberprint Group Co., Ltd. (Cyber), to bolster production capacity, enlarge the customer network, strengthen raw material management, and continuously improve the company’s capability to offer high-quality packaging solutions.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited or SCGP, revealed that SCGP has expanded its business through the acquisition of flexible packaging assets from Cyberprint Group Co., Ltd. (Cyber), a multi-type printing and packaging service provider in Thailand, with a total investment of Baht 450 million. The sum includes the investments in assets such as machinery and equipment, building, land and remaining inventory, along with the investment budget for future capacity expansion and the related working capital. This asset acquisition by Prepack will be solely for flexible packaging-related assets. Cyber will continue to independently operate its other businesses going forward.
The business expansion was achieved through Prepack Thailand Co., Ltd. (Prepack) under SCGP, a high-quality flexible packaging manufacturer. The Company’s packaging solution is accredited with ISCC Plus (the International Sustainability and Carbon Certification) for an organization that practices carbon management and sustainable development of overall supply-chain. Currently, Prepack has 3 production bases in Thailand. Its head office is located at the Sinsakhon Industrial Estate, Samut Sakhon.
This investment will lead to a 12% increase in SCGP’s flexible packaging production capacity in Thailand. Half of the additional capacity would be from Cyber’s existing flexible packaging facility, located near Prepack in Sinsakhon Industrial Estate, which will be integrated into Prepack in the 1st quarter of 2023. Another half will be from new capacity expansion project in the same compound with expected commercial start-up in the 4th quarter of 2023. As a result of this investment, SCGP will be able to enhance customer network in several segments, particularly packaging customers in the pet food and health supplement product who are Cyber’s existing customers. This project would positively result in intensifying the efficiency of cost management caused by co-sourcing of raw materials and improvement in economics of scale while also strengthening the Company’s capability to offer high-quality packaging solutions.