Siam Cement to buy Vietnamese packaging company

Siam Cement is to acquire a Vietnamese packaging materials maker, Bien Hoa Packaging. The group will purchase Bien Hoa Packaging through a joint venture with top Japanese cardboard maker Rengo.

Siam Cement said the size of the deal has yet to be determined, but estimated it would be less than 15 per cent of the Thai group's total assets as of the end of December, which came to THB634.7bn (US$19.2m). Bien Hoa produces 90,000t of cardboard boxes and 10,000t of food packaging materials a year. The company, listed on the Ho Chi Minh City Stock Exchange, earned a US$6m net profit for 2019 on about US$73m in revenue.

Siam Cement "has been closely monitoring the situation and thoroughly considered this strategic opportunity," the Thai company said in a statement. Siam Cement has been active in acquisitions, largely in southeast Asia. It operates production sites in Vietnam, Indonesia, the Philippines and Malaysia, in addition to Thailand.