SCG subsidiary SCG Packaging expects to expand its revenue 7% from last year to 86.6 billion baht, driven by growing demand in the Asean market, says president Tanawong Areeratchakul.
Demand for paper is strong among Asean's 660 million people. The paper market in the region is valued at US$50.5 billion (1.58 trillion baht), and grew 5% last year. The global packaging market reached $930 billion, and grew 3% in that same period.
"The Asean market offers lots of opportunities. Demand for packaging is influenced by the growing demand for food, beverages, and consumer products. On the other hand, paper products are being disrupted by digital technologies," he said.
Mr Tanawong expects Thailand's paper and packaging market to rise 3-4% this year to 3.09-3.12 billion baht (excluding glass and plastic materials).
He said e-commerce is a key factor that will drive demand for packaging products in the region.
SCG Packaging focuses on digital technology to tailor products to customers. This year the company expects revenues from its e-commerce segment to double from last year, when it generated 100 million baht.
SCG Packaging set an investment budget of 3 billion baht in 2018. The budget does not include funds for mergers and acquisitions, said Mr Tanawong.
The company is seeking merger opportunities in Asean, given the region's growth, which is much stronger than that of markets such as Europe, he said.
SCG Packaging continues to invest in R&D to launch new products and services in the industry. It has invested in several packaging businesses in Thailand and Asean, including food contact paper packaging, flexible packaging and rigid packaging.
The company can produce 2.5 million tonnes of paper products, 1 million tonnes of packaging products, and 590 million square metres of flexible packaging products.
