Thailand’s SCG Packaging buys US$652 million stake in Indonesia’s Fajar Surya

THAILAND-BASED SCG Packaging has acquired an additional stake worth US$652.4 million in Indonesian packaging paper-maker Fajar Surya, increasing its ownership in the company to 99.7 per cent in a move to expand its operations in South-east Asia.

SCG Packaging, a subsidiary of 107-year-old conglomerate Siam Cement, said on Friday (Aug 30) it had purchased an additional 44.48 per cent in Fajar Surya from Intercipta Sempana, lifting its total stake from 55.24 per cent.

Indonesia has emerged as one of the primary hubs for domestic consumption, reflecting its huge population, young demographic and increasing foreign investment.

Fajar was established in 1988 and offers products such as kraft liner board and corrugated medium paper for carton-box packaging.

The company reported revenues of 12.5 trillion rupiah (S$1.1 billion) in 2023.