Thailand’s TPBI buys stakes in UK firms to enter paper packaging market Factory Suppliers Manufacturers Quotes

Thailand’s TPBI buys stakes in UK firms to enter paper packaging market

Thailand’s TPBI buys stakes in UK firms to enter paper packaging market

Thailand’s TPBI buys stakes in UK firms to enter paper packaging market

TPBI, the Thailand-based plastic bag maker, has entered the paper packaging market with UK and Australia acquisitions.

Thailand’s TPBI buys stakes in UK firms to enter paper packaging market

The move is in response to the growing demand in the global market for eco-friendly packaging products,

The company has signed agreements to acquire Intelipac Paper Manufacturing (IPM), Intelipac Limited (ITP) and ITPA (Australia), which will enhance its products variety as its product portfolio will comprise both paper and reusable plastic. This will, in turn, improve its capacity to attract new customers and retain existing customers.

The acquisitions, executed to implement its ‘Transformation Strategy’ as part of its strategic campaigns to strengthen its existing business and enter new businesses through acquisitions, will enable it to start earning fresh revenue (THB 1 billion per year) as early as Q4 2018 and thus achieve the FY2018 growth target.

Somsak Borrisuttanakul, chief executive of TPBI revealed that TPBI International, TPBI’s fully-owned subsidiary, has signed agreements to buy all ordinary shares in Intelipac Paper Manufacturing (IPM) and Intelipac (ITP) and 25% of the ordinary shares in Intelipac Australia (an (ITPA), with the remaining 75% held by ITP. IPM is a manufacturer of production and supply of paper packaging products to food and bakery industries and shopping malls in the UK and ITP engages in trading of plastic packaging products (e.g. reusable bags, bags for vegetables, fruits and other foods) in Australia, UK and other European countries. ITPA engages in trading of plastic packaging products (e.g. reusable bags, bags for vegetables, fruits and other foods) in Australia.

The acquisitions will increase TPBI’s competitiveness in the world market through an entry in the business of producing and supplying eco-friendly paper packaging products, with a manufacturing base in the UK and channels for distribution of reusable plastic packaging in Australia, UK and other European countries.

They will allow TPBI to produce reusable bags and use the channels to fulfil market demand, and will add the variety of reusable products that the company can produce as it will be able to reuse plastic granules as raw materials. They will also enable the company to tap the rising global demand for eco-friendly packaging products. Moreover, the company is seeking to employ paper packaging for research and development of new products for distribution in Thailand.

“We relentlessly explore new opportunities to strengthen the existing business and enter new businesses through acquisitions as part of our strategic moves to achieve production and supply of eco-friendly packaging products. The acquisitions have transformed us into a world-class producer and supplier of packaging products from a variety of materials, and they have equipped us with the channels for distribution of reusable plastic bags in new markets. We are also looking to increase the variety further to reflect demand in European and Australian markets”, said Borrisuttanakul.

Kamol Borrisuttanakul, TPBI’s chief financial officer, noted that, through the acquisitions, TPBI has obtained a paper packaging production plant with a production capacity of 2,000,000 units per day in the UK, as well as management teams with extensive experience and understanding of the European and Australian market environment and demand. The acquisitions have also opened up the opportunity to attract new customers who are Europe- and Australia-based global leaders and are existing customers of ITP, IPM and ITPA. He therefore believed that the acquisitions will contribute to TPBI’s sustainable growths in the long term.

The investments, intended to fuel expansions and enhance TPBI’s strengths, will cost around THB 600 million (approx. GBP 13 million) and will be financed by the 2016 IPO proceeds. After the acquisitions, TPBI is estimated to earn fresh revenue at THB 1 billion per year starting Q4 2018. The company is also planning to double its production of paper packaging products to cater to global demand.


Please feel free to give your inquiry in the form below. We will reply you in 24 hours.
Message