Scientex acquires two consumer packaging plants from Mondi Group

7 August 2015


Scientex acquires two consumer packaging plants from Mondi Group

  • Acquisition to expand clientele, enhance downstream consumer packaging portfolio and accord the Group larger market share in Asia Pacific
  • Expands consumer packaging manufacturing capacity by 30% immediately, with addition of two new plants in Ipoh, Perak

Global packaging manufacturer and leading property developer Scientex Berhad has through its subsidiary signed a share purchase agreement to acquire packaging player Mondi Ipoh Sdn Bhd (MISB) for a purchase consideration of RM58.0 million to expand its consumer packaging division.

The purchase will see Scientex's wholly-owned subsidiary Scientex Packaging Film Sdn Bhd acquire a 100% stake in MISB from Mondi Consumer Packaging International GmbH, a wholly-owned subsidiary of international packaging and paper group Mondi. Mondi has a dual listed company structure, with a primary listing on the Johannesburg Securities Exchange for Mondi Limited and a premium listing on the London Stock Exchange for Mondi plc.

"The successful acquisition of MISB would immediately allow the enlarged Scientex Group to expand our clientele to include leading international brands in the food and beverage (F&B) and fast moving consumer goods (FMCG) sectors. Additionally, approximately 70% of MISB's revenue comprises exports to Asia Pacific, thus giving us a larger market share in the regional packaging industry.
Furthermore, we stand to benefit from the increased production capacity of the Group's downstream consumer packaging products, particularly functional films. This allows us to serve a broader set of requirements from new and existing clientele, especially large multinationals with diverse packaging needs." says Mr. Lim Peng Jin Managing Director of Scientex Berhad

The proposed acquisition of MISB would also provide the enlarged Scientex Group with synergistic benefits on the back of its expanded production and clientele. These include economies of scale from the larger scale of raw material procurement, enhanced operational efficiency, and increased effectiveness of its marketing and distribution channels.

MISB's principal activity is the production of downstream specialty consumer packaging films and film-based components including form-fill-seal (FFS) bags. It has two manufacturing plants situated in Sungai Siput and Chemor in Ipoh, Perak, with a total production capacity of 16,800 metric tonnes (MT) per annum (p.a.).

Post-acquisition of MISB, Scientex's consumer packaging production capacity would immediately be boosted by about 30% to 76,800 MT p.a., from 60,000 MT p.a. currently.

The proposed acquisition of MISB would be funded via internally generated funds.

Barring any unforeseen circumstances, the proposed acquisition is estimated to be completed by 11 August 2015. Upon completion, it is expected to contribute positively towards Scientex's earnings for the current financial year ending 31 July 2016 (FY2016) onwards.

On the Group's future prospects, Mr Lim commented:

"The regional consumer packaging markets, comprising not only the lucrative but also resilient F&B and FMCG industries, offers us much opportunity for growth. This would draw on our existing capabilities and experience in manufacturing quality-centric and innovative flexible packaging products at competitive rates, to support industry players across the Asia Pacific region."


For media enquiries, please contact:
Ms. Julia Pong julia@aquilas.com.my Tel: +603-2711 1391 H/P: +6012-3909 258 Mr. Tay Tze Yi tayty@aquilas.com.my Tel: +603-2711 1391 H/P: +6016-3380 555




 



Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.