SCG Packaging Plc (SCGP) plans to have its recently acquired Go-Pak UK Ltd expand to food packaging services in the global market as more consumers buy food to eat at home and choose environmentally-friendly products.
The packaging arm of SCG, Thailand's largest industrial conglomerate, SCGP yesterday concluded a deal to acquire a 100% share in the UK-based food service solution provider.
The acquisition is expected to help SCGP expand its customer base in food packaging services as well as retail and wholesale businesses in the UK, Europe, North America and Asean.
Go-Pak is headquartered in Bristol, England, with a production base in southern Vietnam.
"People's lifestyles are changing. They eat at home or the office, and use more food delivery services," said SCGP chief executive Wichan Jitpukdee. "This is a trend that will direct the food packaging industry."
SCGP estimates the food and beverage industry in Asean will grow by 6-7% annually between 2019 and 2024, bolstering demand for food packaging.
The company aims to expand its business in Asean and countries with high market potential driven by a large population and high spending.
SCGP commands a 36% market share in Asean. The company sells food packages and paper straws under the Fest brand to serve demand for environmentally-friendly packaging products.
It operates 40 factories in five countries -- Thailand, the Philippines, Vietnam, Malaysia and Indonesia -- providing packaging products to food and beverage, electronics, automotive and e-commerce industries.
Go-Pak is a distributor of more than 250 food service packaging products, including plates, forks and spoons, and cups and glasses, made of polymer and various degradable materials.
It has a production capacity of 4 billion pieces per year. Its customer base includes food service providers, retailers and wholesalers in food-related businesses, fast-food restaurants and caterers.
Between the fourth quarter of 2019 and the third quarter of 2020, Go-Pak earned £68.7 million, or 2.80 billion baht, and its assets are valued at £40.2 million, or 1.65 billion baht.
In 2020, SCGP said it would spend 27 billion baht until 2023 supporting its business expansion, mergers and acquisitions as well as maintenance projects.