JAPAN/THAILAND – Japanese corrugated packaging giant Rengo Co Ltd has acquired the majority stake in Thailand’s corrugated converter Tawana Container Co Ltd.
Thai Container Group Co Ltd – Rengo’s joint venture company with SCG Paper Public Company Limited (30:70 ratio) – bought a 72% share in Tawana, which has a corrugated board/box plant in the Bangpoo Industrial Estate in Samutprakarn province near Bangkok.
Financial details of the transaction were not disclosed.
This deal increases Thai Container’s corrugated packaging production bases in the country to 11 plants, increase the annual production capacity for corrugated board from 642,000 to 703,000 tons, and further strengthen the Rengo Group’s corrugated packaging supply structure.
While, corrugated packaging demand in Thailand last year was lower in comparison to the previous year, Rengo said the local economy has recovered.
“This year the economy, including reconstruction-related demand, has recovered and the GDP growth rate is forecasted to be 5.5% (according to the Thai Ministry of Finance). Estimates state that corrugated packaging demand will also grow accordingly,” Rengo explained in its press statement.
“The corrugated packaging business in Thailand is an important strategic base for the overseas business of the Rengo Group, which aims to be a “General Packaging Industry” (GPI),” the Japanese company added.
“Rengo will work to further enhance its corrugated packaging supply system in Thailand, where economic growth is predicted in the future as well.”