Paper and plastics recycler Peute has been bought by Thai company SCG Packaging.
The acquisition will enable SCG Packaging to integrate one million tonnes per year of recovered paper into its business.
Peute currently processes this one million tonnes of fibre at its facility in Dordrecht, along with 100,000 tonnes per year of plastics. However, it is currently in the process of relocating to Alblasserdam, near the port of Rotterdam. This will enable it to double capacity and improve cost management efficiency.
SCG Packaging chief executive Wichan Jitpukdee said: “SCGP has completed the transaction to acquire 100% stake in Peute Recycling B.V., the largest packaging materials recycling company covering both recovered paper and plastic in the Netherlands.
“Payment for the 100% stake is the immediate €78.19 million (£66.43 million). This purchase is through SCGP Solutions (Singapore) Pte. Ltd., which is a wholly owned subsidiary of SCGP.
“Peute’s financial performance will be consolidated from July 2022 onward. 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. It also represents another crucial milestone in the company’s merger and partnership (M&P) plan.”
In a statement, Peute said: “We are proud to announce that the Peute Group (has been acquired by SCG Packaging, a leading multinational consumer packaging solutions provider.
“This transaction will enable both SCG Packaging and Peute to further expand into the rapidly growing international packaging material recycling business, while also being a pillar for SCG Packaging’s long-term strategic direction to strengthen all levels of packaging business from raw materials sources.
“With over 50 production locations in South-East Asia, the UK and Spain SCG Packaging is committed to fulfilling the increasing preference for sustainable packaging through products ranging from fiber packaging, polymer packaging and performance packaging.
“For Peute the transaction further means that the company is perfectly positioned for the next phase in its growth strategy, in which Peute will relocate to the new strategically located and state of the art production location in Albasserdam (adjacent to the Rotterdam East terminal) in 2023.
“This relocation will result in a substantial expansion of sorting capacity, improved efficiency and more sustainable transport that needs to lead to achieve Peute’s ambitious goals of handling 2 million tonnes of recovered paper and 0.2 million tonnes of recovered plastics per year.
“Peute will be operating under the current company names (i.e. paper and plastic) and the same management and staff as a separate business unit within SCG Packaging.”
