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).
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.
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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.
