SCA began its relationship with Central Package Group in January 1999, when it acquired 11 per cent of the shares in the Singapore-based packaging company Central Package, an ownership interest that successively increased to 48 per cent. SCA has now reached an agreement with minority owners covering the acquisition of additional shares.
Following the current transaction, SCA’s interest increases to 65 per cent, with the ambition of further increasing the ownership interest to more than 90 per cent. The founder of Central Package, Anthony Chen, will retain a minority interest.
During the period with SCA as a part-owner, Central Package has shown very favourable and profitable growth. Annual sales currently correspond to slightly more than USD$95m margin of about 16 per cent. The company holds a stable position on the Chinese packaging market, which is showing growth of about 10 per cent annually. Central Package has some 20 converting units in China specialising primarily in production of corrugated board and protective packaging. In addition to operations in China, Central Package also has converting units in Singapore, Malaysia, Thailand and Indonesia.
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