SCG completes acquisition of Duy Tan Plastic

SCG completes acquisition of Duy Tan Plastic

This acquisition is part of SCG's broader strategy to expand its packaging division through mergers and acquisitions.

Inside a Duy Tan Plastic production line. — Photo courtesy of the company

SCG Packaging, a subsidiary of Thailand's SCG Group, announced the successful completion of its acquisition of 100 per cent of Duy Tan Plastic Manufacturing, a leading player in the rigid plastic packaging sector in Việt Nam. 

This acquisition follows SCG's initial investment in Duy Tan in 2021, when the firm acquired a 70 per cent stake.

The transaction involved an additional investment of over VNĐ2.8 trillion (US$108 million), which brings the total valuation of Duy Tan to approximately VNĐ9.4 trillion.

The purchase was executed through SCGP Rigid Packaging Solutions Pte Ltd, a wholly-owned subsidiary of SCGP.

With this strategic move, SCG aims to enhance its presence in the ASEAN packaging market, particularly within the rapidly growing Vietnamese economy. 

The country has been identified as a priority market due to its robust economic growth and increasing foreign direct investment.

Duy Tan has established itself as a leading manufacturer of rigid plastic packaging in Việt Nam, recognised for its innovative and sustainable solutions. The company offers a diverse range of products, contributing to its competitive advantage and sustainable growth prospects. 

In 2024, Duy Tan reported revenues of VNĐ5.4 trillion, with a net profit after tax of VNĐ578 billion and total assets amounting to over VNĐ4.6 trillion.

SGC manages 27 subsidiaries in Việt Nam and views the country as its second most important strategic market after Thailand.

This acquisition is part of SCG's broader strategy to expand its packaging division through mergers and acquisitions.

The company has previously acquired significant stakes in other firms, including Batico and Sovi, demonstrating its commitment to growth in the packaging sector. 

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