The Siam Cement Public Company Limited (SET: SCC) announced on Tuesday (5 April) that SCG Chemicals Public Company Limited (SCGC), a wholly owned subsidiary of SCC, has completed the 70% acquisition in Sirplaste-Sociedade Industrial de Recuperados de Plástico, S.A. (Sirplaste), a producer of high-quality recycled polymers or post-consumer resin (PCR) in Portugal. This disclosure follows the previous notification to The Stock Exchange of Thailand on April 28, 2021.
Payment for this transaction is the immediate EUR23.7 million (approximately THB901 million) through SCG Chemicals Trading (Singapore) Pte, Ltd., which is a wholly owned subsidiary of SCGC.
This transaction reaffirms SCGC commitment in green polymer strategy and reflects SCGC’s growing recycling business, while also allowing access to Sirplaste’s know-how and multinational clients. The recycled plastics market in Europe is estimated at 3.7 million tons in 2021, and is projected to grow at a rate of 10.6 percent CAGR over the next 5 years, according to Nexant Energy & Chemicals Advisory (NexantECA).
As Portugal’s largest producer of PCR, Sirplaste’s capacity is 36,000 ton per year and has a cluster of multinational clients throughout Portugal and other European countries. SCGC looks to synergize its compounding technology with that of Sirplaste’s deep client understanding for a quicker product improvement cycle.
At the end of 2021, Sirplaste recorded full year revenue of EUR23.6 million (approximately THB897 million). Beginning in the second quarter of 2022 and onwards, Sirplaste’s financial performance will be consolidated into SCC’s financials.
