SCG Strives to Be the Leading Total Packaging Solutions Provider in ASEAN Becoming a Major Shareholder of Fajar, a Leading Indonesian Packaging Paper Company

Event Calendar Press Releases Friday May 10, 2019 17:45
Bangkok--13 May--SCG

SCG has exponentially accelerated growth strategy announcing the latest investment of approximately 21,150 million Baht (or USD 665 million) in PT. Fajar Surya Wisesa Tbk. (or "Fajar"), one of the largest packaging paper provider in Indonesia with significant production capacity that can serve the growing packaging consumption of 270 million people. This vital investment help foster the growth of SCG's Packaging Business in long run.

Mr. Roongrote Rangsiyopash, President & CEO of SCG, discloses "SCG is thriving to push forward long-term growth as one of its key strategies in 2019 by continuously expanding its businesses in ASEAN countries. Recently, Packaging Business of SCG invests in a 55% stake in PT. Fajar Surya Wisesa Tbk. (or "Fajar"), a leading Indonesian packaging paper company and also a listed company on the Indonesia Stock Exchange. This investment is valued at approximately 9.6 trillion Rupiah (approximately 21,150 million Baht or USD 665 million) and is expected to be completed in Q3/19, whereby financing will come from internal sources. For the future growth opportunity in the packaging business, SCG is in the process of exploring the feasibility of raising equity at the SCG Packaging level. This feasibility is expected to be completed by the end of 2019."

Mr. Roongrote said "The major shareholding in Fajar will allow SCG to enhance its ASEAN growth, especially in Indonesia that provides tremendous future growth opportunity for Packaging Business. Considering Indonesia's population of 270 million and its per capita consumption of packaging paper, the market growth potential there is almost 3 times of Thailand's."

Over the years, Packaging Business of SCG has demonstrated its ability to progressively grow its business and act promptly when needed to handle business challenges. The business aims at becoming the leading total packing solutions provider by establishing more production base in ASEAN countries, especially in markets with constant growth opportunities including Vietnam, Malaysia, Indonesia, and the Philippines. Furthermore, Packaging Business of SCG has been developing innovations and technologies to add value to products, services and production process to fulfill the needs of enterprises and consumers' consumption. The business is also driving the Circular Economy in line with the SCG practice "SCG Circular Way" aiming to maximize the efficient resource utilization.

Packaging Business recorded FY2018 Revenue from Sales of 87,255 million Baht and Profit for the Year of 6,319 million Baht. Meanwhile, with the total sales of 1.38 million tons of packaging paper in 2018, Fajar registered sales of 9.94 trillion Rupiah (approximately 21,900 million Baht) and recorded profit for the year of 1.41 trillion Rupiah (approximately 3,100 million Baht).

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