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Thai owned SCG to acquire more packaging companies
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PT Siam Cement Group (SCG) Indonesia president director Pathama Sirikul (left), SCG country director for Indonesia Nantapong Chantrakul (center) and PT SCG Indonesia business support director Vikorn Phongsatorn speak at a press conference in Jakarta on Oct. 3. (JP/Anton Hermansyah)
T
hai owned PT Siam Cement Group (SCG) Indonesia plans to acquire more packaging companies in Indonesia next year to achieve higher growth amid tighter competition in the cement industry, the company’s core business.
PT SCG Indonesia business support director Vikorn Phongsatorn said on Tuesday his company had targeted local companies, but he could not mention the number that would be acquired because it had to compete with other businesses to win the deal.
"We will target some particular companies but it is hard to say how many because merger and acquisition opportunities come and go," Vikorn said in Jakarta.
PT SCG Indonesia has three main businesses, cement and building material, chemical and packaging.
Packaging companies contributed 5 percent of the US$425 million revenue in 2016, cement and building material contributed 80 percent and chemical contributed 15 percent.
Vikorn said his company wanted to grow the packaging business as it had the potential to grow by 5 to 10 percent annually, while growth in the cement business was slower than expected because of tough competition.
"Packaging has a chance to grow as the fast-moving consumer goods (FMCG) business is expanding because of stable public spending. They buy a lot of packaging [food]. Meanwhile, the cement business is challenging despite massive infrastructure projects because foreign companies from Europe, China and elsewhere are entering the Indonesian market," he said. (bbn)
