Peute, which last year established Peute UK, has been heralded by the purchaser, Thailand’s SCGP Solutions as allowing it to move into the “rapidly-growing packaging materials recycling business” through the acquisition.
SCGP Solutions is a subsidiary of SCG Packaging (SCGP). Within the SCGP group, another subsidiary is the United Pulp and Paper Co with 56 manufacturing sites in countries including Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK, and Spain. The acryonym SCG stands for Siam Cement Group, an industrial conglomerate in Thailand. Peute is a trading company and also has an operational site in the Netherlands.
SCGP said the deal will give it access to “an additional one million tons per year of recovered paper and strengthens its integrated packaging business, from sources of raw materials, upstream and downstream production through to integrated packaging solutions, while also augments the ability to fulfil consumers’ needs for sustainable packaging and enhances the efficiency of recycling operations in ASEAN with leading technologies.” Peute also handles 100,000 tonnes of plastics.
Wichan Jitpukdee, chief executive of SCG Packaging announced the purchase. It was noted by the company that payment for the 100% stake is an immediate 78.19 million Euro (approximately £66 million or 2,875 million Thai Baht).
A statement from the company noted that “The purchase is through SCGP Solutions (Singapore) Pte. Ltd., which is a wholly owned subsidiary of SCGP. Peute’s financial performance will be consolidated from July 2022 onward. The acquisition is an important pillar of the Company’s long-term strategy to strengthen all levels of packaging business from raw material sources, upstream and downstream production through to the integrated packaging solutions. It also represents another crucial milestone in the Company’s merger and partnership (M&P) plan.”
A 60-year-old business, Peute was seen as one the largest independent packaging materials recycling and trading company of paper and plastic in Europe.
SCGP said that with a “solid operation and ability to continue business growth amid economic challenges in Europe”, Peute recorded a revenue of 249 million Euro (approx. 9,160 million Baht) in 2021 with a profit of 3.2 million Euro (approx. 120 million Baht) and assets of 52 million Euro (approx. 1,930 million Baht) at the end of last year.
Peute currently handles materials at its facility in Dordrecht with an ongoing project to relocate the facility to Albasserdam, nearby Rotterdam port, to double the sourcing capacity and improve cost management efficiency.
Mr Wichan said he is confident that the Peute investment “will enable SCGP to quickly expand and grow in the packaging materials recycling business which is one of the integral parts of the Company’s long-term strategy to strengthen all levels of packaging operation, covering from upstream to downstream production, while also enhance the internal integration of SCGPs’ packaging solutions.
He continued: “The investment is aligned with the growing global awareness of sustainability, which leads to significant increase in the usage of recycled materials. The ability to directly access greater volumes of recovered paper and plastic will enable SCGP to meet the surging market demands as part of the evolving consumer trends. Furthermore, Peute’s expertise in advanced waste management and related technologies would help strengthen SCGP’s efficiency in packaging materials recycling operation in ASEAN.”
The company also noted: ”As SCGP has been continuously expanding the diversified and integrated packaging business, the key strategic raw material for fiber packaging operation is recovered paper. At present, SCGP’s annual usage of recovered paper reaches 4.4 million tons and is expected to increase along with the expansion of packaging paper capacity going forward. This expansion will boost SCGP’s competitiveness in terms of recovered paper sourcing networks; through owned recycling stations, direct collection from primary sources and local suppliers, as well as diversified import sources from the USA, Europe, Japan, and Oceania.”