LSSPI serves food producers and packaging wholesalers in Malaysia, Singapore, Australia, the Philippines, and other Southeast Asian nations
Lee Soon Seng Plastic Industries Head Quarters. (Credit: MITSUI & CO., LTD.)
Japan-based Mitsui and FP Corporation (FPCO) have jointly decided to acquire all the shares in Lee Soon Seng Plastic Industries (LSSPI) from SCGM Bhd.
The total acquisition value is around JPY16bn ($123m). Following the acquisition, Mitsui will own a 60% stake in LSSPI, while FPCO will own the remaining 40% stake.
Established in 1984, LSSPI sells and manufactures functional food containers in Southeast Asia.
LSSPI’s capabilities include the ability to complete the whole manufacturing process, from product design and mould production to the supply of the finished goods through its own distribution network.
It serves food producers and packaging wholesalers in Malaysia, Singapore, Australia, the Philippines, and other Southeast Asian nations.
After obtaining permits including approval through a special resolution at SCGM’s extraordinary general meeting of shareholders, the acquisition of the shares will be completed in the second quarter of the fiscal year ending March 2023.
Mitsui and FPCO will use Mitsui’s investees’ and partners’ networks in Southeast Asia to expand sales.
The firms will also use FPCO’s know-how to improve production efficiency and various production development technologies to develop eco-friendly products.
By providing functional food containers, the two firms will contribute to the continued expansion of LSSPI as well as the establishment of a more enriched society by enhancing Asian dietary lifestyles and their convenience.
In September last year, PureCycle Technologies partnered with Mitsui to develop and operate a recycling facility in Japan to transform polypropylene waste into ultra-pure recycled polypropylene.