Thailand's SCGP to expand food service packaging to the West after buying Go-Pak
BANGKOK, NNA - SCG Packaging Public Co. has bought over the United Kingdom’s food packaging provider Go-Pak UK Ltd. in a move to expand its business for foodservice products.
SCG Packaging (SCGP), a wholly owned subsidiary of Siam Cement Group, is one of Thailand’s major packaging companies.
SCGP announced a share purchase deal to acquire 100 percent of Go-Pak UK in its filing to the Stock Exchange of Thailand on Monday.
The transaction will be processed through a wholly owned subsidiary of SCGP, stated the company. Transaction details remain undisclosed until the purchase completion in December, it added.
At present, SCGP produces fiber-based products, polymer packages and food service products for customers throughout the ASEAN region, in countries such as Vietnam, Indonesia, Malaysia, Philippines and Thailand.
It also operates two food service packaging plants in Thailand and Malaysia to serve key markets in ASEAN and Japan.
The acquisition of Go-Pak is set to grow its food service packaging business as it builds on Go-Pak’s client base in the UK, Europe and North America.
The use of food packaging in Thailand and elsewhere has grown immensely due to the sharp rise in food delivery orders as people had to work from home during pandemic lockdowns.
Food deliveries in Thailand have increased to 66-68 million orders this year, a 78 to 84 percent jump from 2019, according to estimates by Kasikorn Research Center.
In the third quarter of 2020 alone, the company made a total revenue of 69.1 billion baht ($2.2 billion), enabled mainly by its polymer packaging products as a result of the surge in demand for food, frozen food and canned food products.
The company reported increased demand from ASEAN following the rise in sectors such as food and beverage, hygiene-related products and e-commerce in the first nine months of 2020.
Go-Pak has been providing food service packaging to the UK, European and North American markets, where its products are well known among businesses dealing in ready-to-eat and takeaway foods as well as beverages. Among its clients are food service distributors, retailers, restaurants, fast-food chains, and caterers.
The company has had the capacity to produce 4 billion units of food service packaging products yearly. In the last 12 months, it managed to make a total revenue of 68.7 million GBP, said SCGP.