Scientex partners Japan-based Taisei Lamick to expand into liquid, paste packaging
02 Sep 2022
Scientex Bhd is partnering with Japan’s leading producer of liquid and paste packaging systems, Taisei Lamick Co Ltd, to expand its market share in the region.
Scientex’s wholly owned subsidiary Scientex Packaging Film Sdn Bhd signed a share sale agreement (SSA) with Taisei Lamick to acquire 8,100 ordinary shares representing 80.2 per cent equity interest in Taisei Lamick Malaysia Sdn Bhd (TLM) for RM63.8 million cash.
Upon completion of the SSA, Scientex will hold 80.2 per cent equity in TLM, while Taisei Lamick will hold the remaining 19.8 per cent equity.
Scientex chief executive officer Lim Peng Jin said this partnership is a meaningful step for the company on multiple fronts.
“This collaboration, leveraging on the
strong reputation and collective strengths of Scientex and Taisei Lamick.
“The partnership is poised to bring industry-defining cost-competitive quality products to regional clientele and hence potentially expand our flexible packaging market share,” he said in a statement today.
Lim said the deal would enable Scientex to gain an immediate foothold into the fast-growing film business used in liquid and paste packaging, thus enhancing Scientex’s offering of diversified and customised flexible packaging products, especially in the food and beverage (F&B) sector.
“It will also allow us to expand our capability into producing customised healthcare and hygiene-related packaging and widen the range of value-added packaging solutions in the FMCG sector,” Lim said.
Tokyo Stock Exchange-listed Taisei Lamick is involved in the manufacturing and sale of plastic films, retort pouches, and pouches with zippers for automatic filling with liquids and pastes.
The company also manufactures and sells DANGAN auto fillers for liquids, pastes, peripheral devices, and technical services.
Its subsidiary TLM is primarily involved in the manufacturing and selling of printed and laminated flexible light packaging materials for F&B and fast-moving consumer goods (FMCG) products.
The share acquisition is to be funded by internally-generated funds and bank borrowings and is not subject to the approval of Scientex shareholders and government authorities in Malaysia.
The acquisition is expected to be completed in the second half of this year and is anticipated to contribute positively to the earnings and net assets of Scientex for the financial year ending 31 July 2023.