Bangkok (VNA) – Thailand’s SCG Packaging (SCGP) is joining handswith its Vietnamese partners under an investment worth 10 billion THB (334million USD) to expand its packaging solution business in Vietnam, where demandfor packaging products is growing.

The latest move is the signing of a share purchase agreement on February 9 toacquire a 70 percent stake in the Duy Tan Plastics Manufacturing Corporation,Vietnam's top producer of rigid plastic packaging products, according to itsletter sent to the Stock Exchange of Thailand.

The purchase will be made through the SCGP's wholly-owned subsidiary andfurther transaction details will be provided in the middle of this year.

SCGP chief executive Wichan Jitpukdee said SCGP has constantly increasedinvestment in Vietnam, which has yielded a revenue growth of more than 10percent annually.

"SCGP is prepared to work with allpartners to share experience and knowledge in the development of integratedpackaging solutions and support the growing demand for diverse types ofpackaging among customers in ASEAN," Wichan was quoted by the Bangkok Postas saying.

Duy Tan operates business-to-business sales to multinational companies andlocal brand owners of consumer and fast-moving consumer goods. The company alsomanufactures household plastic containers under the brand name "DuyTan," with a capacity of 116,000 tonnes per year, the paper said.

The10 billion baht is part of 20-billion-baht investment budget the SCGP announcedlast month for business expansion and merger and acquisition plans.

Earlier in 2009, the  SCGP establishedVina Kraft Paper in the Vietnamese southern province of Binh Duong to producepackaging paper, with total production capacity of 500,000 tonnes per year.

In 2015 the company invested in the Tin Thanh Packing Joint Stock Company(BATICO), one of the five largest flexible packaging producers in Vietnam.

The company also acquired 94.11 percent stake in the Bien Hoa Packaging JointStock Company (SOVI), a producer of corrugated paper and offset laminatedpackaging in Vietnam, with an annual total capacity of 100,000 tonnes.

According to Wichan, allthree projects expand SCGP's production base for downstream products in Vietnamand are expected to contribute sales of an additional 8.5 billion baht per year.

The SCGP is also seeking opportunities for business expansion in paperproduction capacity in northern Vietnam to serve demand within the country./.