Thai-based paper giant SCGP has moved into the growing packaging materials recycling business by taking over Peute, the Netherlands’ largest independent company in the sector.
SCGP says the acquisition gives it an additional one million tonnes per year of recovered paper and strengthens its integrated packaging business. Subsidiary SCGP Solutions is said to have paid EUR 78.19 million for the Dordrecht-based company which also processes 0.1 tonnes of recovered plastics.
Peute has an ongoing project to relocate the facility to Alblasserdam, near Rotterdam to double the sourcing capacity and improve efficiency.
‘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,’ says a press release.
SCGP is confident the investment will enable expansion and growth in the packaging materials recycling business which is one of the integral parts of its long-term strategy across all levels of packaging.
‘The investment is aligned with the growing global awareness of sustainability, which leads to significant increase in the usage of recycled materials,’ the release adds. ‘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.’
At present, SCGP’s annual usage of recovered paper is 4.4 million tonnes and this is expected to increase along with the expansion of packaging paper capacity. Currently, it operates 56 manufacturing facilities in Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK, and Spain.