SCGP acquires 90% of JZF through TCG for 68 million baht

M&A · PartnershipCorporate Action

โดย HoonVision·

Summary · why it matters

Siam Packaging Group's joint venture TCG, a partnership between SCGP and Japan's Rengo Company Limited in a 70:30 split, has acquired 90% of the ordinary shares of Jinjongfa Paper Industry, or JZF, a Thai paper packaging producer, for a total of 68 million baht. SCGP will begin recognizing JZF's operating results in its consolidated financial statements from October 2026. For 2025, JZF reported revenue of 205 million baht, assets of 240 million baht, and production capacity of 28,000 tons per year, with its factory located in Chonburi province, close to SCGP's customer base in the eastern region. JZF produces corrugated paper boxes with a focus on efficient cost management, and its main customers are Chinese fruit exporters operating in Thailand. This investment aligns with SCGP's strategy of expanding its consumer goods packaging business in the ASEAN region and is expected to create synergies in operations, cost management, and trade, as well as increase cross-selling opportunities and strengthen competitiveness. Meanwhile, distributing fruit packaging orders to JZF will help reduce costs and transportation expenses, improve the capacity utilization of existing plants, and JZF's factory space can accommodate future demand growth, which will support the improvement of SCGP's profit margins and its long-term growth.