The deal aligns with SCGP’s long-term strategy to boost packaging business at all levels, including upstream and downstream manufacturing in the aftermarket and integrated packaging solutions
SCG Packaging wraps up acquisition of Netherlands-based Peute Recycling. (Credit: pasja1000 from Pixabay)
Thailand-based SCG Packaging, through its subsidiary SCGP Solutions (Singapore), has wrapped up the acquisition of the Netherlands-based Peute Recycling for around €78.19m.
Peute Recycling is a packaging materials recycling company covering both recovered paper and plastic.
The deal aligns with SCGP’s long-term strategy to boost packaging business at all levels, including upstream and downstream manufacturing in the aftermarket and integrated packaging solutions.
It will also allow SCGP to enter and strengthen its presence in the expanding packaging material recycling market.
The Thai firm believes that the packaging materials recycling and sourcing capabilities of Peute will allow SCGP to meet the demand for recycled materials.
It will also enable the firm to directly access the sources of recovered paper to enhance the efficiency of recycling operations in ASEAN with good practices of the waste management model in Europe.
Peute currently has the ability to source one million tonnes per annum of recovered paper and 0.1 million tonnes per year of recovered plastics at its facility in Dordrecht.
The company has plans to relocate the facility to Alblasserdam, nearby Rotterdam port, in order to double the sourcing capacity and improve cost efficiency.
Last year, the company recorded revenue of €249m, profit of €3.2m assets of €52m at the end of the year.
Beginning in July 2022, Peute’s financial performance will be combined.
SCG Packaging is a provider of solutions like fibre packaging, performance & polymer packaging, and other solutions for the growing preference for sustainable packaging.
The company currently operates more than 50 sites across Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK, and Spain.
In September 2021, the firm announced an investment of $353m to expand its packaging paper business in Vietnam.