SCG Packaging Plc (SCGP) has acquired a 90.1% stake worth US$1.98 million or around 73 million baht in Jordan Trading Inc, a New York-based trader of waste materials, notably paper, as it continues to strengthen its packaging material recycling business.
The move is part of the company's merger and partnership business plan.
"This deal will enable SCGP to increase its recyclable paper sourcing capacity by 100,000 tonnes a year," said Wichan Jitpukdee, chief executive of SCGP.
According to the company, the remaining 9.9% share in Jordan Trading will be held by SCG International USA Inc, a subsidiary of Siam Cement Plc.
The acquisition is in line with SCGP's long-term strategy to strengthen all levels of its packaging businesses, from raw material sourcing to upstream and downstream manufacturing.
The company also plans to offer integrated packaging solutions.
Jordan Trading, which was established 34 years ago, currently has a sourcing network largely covering the middle of the US to the East Coast.
In 2021, Jordan Trading recorded revenue of around $15.5 million and profit of about $100,000.
SCGP's investment in Jordan Trading will give the company direct access to high-quality American old corrugated containers, also known as AOCC, a key raw material that adds premium strength to packaging paper and fibre packaging production.
The latest deal follows the company's announcement in July that it would take over Peute Recycling BV, the largest packaging material recycling company in the Netherlands, in a move to strengthen its recycling business.
The company offered to buy a 100% stake in Peute for €78.1 million or around 2.87 billion baht, Mr Wichan said earlier.
SCGP's synergy with Jordan Trading and Peute will enhance SCGP's sourcing capabilities and international network of recovered materials.
"We are confident that this business synergy will help us exchange knowledge and build a stronger Asean recycling network via Peute's leading waste management model in Europe and Jordan's efficient recycling operation in the US market," said Mr Wichan.
