SCGP strategically moved into the rapidly-growing packaging materials recycling business via the acquisition of 100% stake in Peute, the Netherlands’ largest independent packaging materials recycling and trading company. The acquisition enables the Company to attain an additional one million tons per year of recovered paper and strengthens its integrated packaging business, from sources of raw materials, upstream and downstream production through to integrated packaging solutions, while also augments the ability to fulfil consumers’ needs for sustainable packaging and enhances the efficiency of recycling operations in ASEAN with leading technologies.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, announced that SCGP has completed the transaction to acquire 100% stake in Peute Recycling B.V. (Peute), the largest packaging materials recycling company covering both recovered paper and plastic in the Netherlands. Payment for the 100% stake is the immediate 78.19 million Euro (approximately 2,875 million Baht). This purchase is through SCGP Solutions (Singapore) Pte. Ltd., which is a wholly owned subsidiary of SCGP. Peute’s financial performance will be consolidated from July 2022 onward. The acquisition is an important pillar of the Company’s long-term strategy to strengthen all levels of packaging business from raw material sources, upstream and downstream production through to the integrated packaging solutions. It also represents another crucial milestone in the Company’s merger and partnership (M&P) plan.
Peute is the largest independent packaging materials recycling and trading company of paper and plastic in the Netherlands with a strong relationship with customers for over 60 years. With solid operation and ability to continue business growth amid economic challenges in Europe, the Company recorded a revenue of 249 million Euro (approx. 9,160 million Baht) in 2021 with a profit of 3.2 million Euro (approx. 120 million Baht) and assets of 52 million Euro (approx. 1,930 million Baht) at the end of last year. Peute currently poses the ability to competitively source 1.0 million tons per year of recovered paper (RCP) and 0.1 million tons per year of recovered plastics at their facility in Dordrecht with ongoing project to relocate the facility to Alblasserdam, nearby Rotterdam port, to double the sourcing capacity and improve cost management efficiency. (more details on Peute on www.peute.nl)
Mr. Wichan says he is confident that the latest investment will enable SCGP to quickly expand and grow in the packaging materials recycling business which is one of the integral parts of the Company’s long-term strategy to strengthen all levels of packaging operation, covering from upstream to downstream production, while also enhance the internal integration of SCGPs’ packaging solutions.
The investment is aligned with the growing global awareness of sustainability, which leads to significant increase in the usage of recycled materials. The ability to directly access greater volumes of recovered paper and plastic will enable SCGP to meet the surging market demands as part of the evolving consumer trends. Furthermore, Peute’s expertise in advanced waste management and related technologies would help strengthen SCGP’s efficiency in packaging materials recycling operation in ASEAN.
As SCGP has been continuously expanding the diversified and integrated packaging business, the key strategic raw material for fiber packaging operation is recovered paper. At present, SCGP’s annual usage of recovered paper reaches 4.4 million tons and is expected to increase along with the expansion of packaging paper capacity going forward. This expansion will boost SCGP’s competitiveness in terms of recovered paper sourcing networks; through owned recycling stations, direct collection from primary sources and local suppliers, as well as diversified import sources from the USA, Europe, Japan, and Oceania.
SCGP is committed to fulfilling and facilitating the increasing preference for sustainable packaging through products ranging from fiber packaging, performance & polymer packaging, and other outstanding solutions. Currently, the Company operates 56 manufacturing facilities in Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK, and Spain.