Japan-based Toppan Printing, along with ITOCHU, has entered into a capital and business alliance agreement to purchase a 10.7% stake in Thailand’s Thung Hua Sinn Printing Network (TPN) Food Packaging for an undisclosed sum.
Owned by TPN Group, TPN Food Packaging is currently involved in the flexible packaging business.
The latest deal has enabled Toppan Printing and ITOCHU to enter the flexible packaging market in Thailand, which is estimated to be worth around JPY120bn ($1.08bn).
Toppan Printing, which produces the GL Barrier transparent barrier film, will also be able to expand its integrated packaging business in the Association of Southeast Asian Nations (ASEAN) region.
With the deal, ITOCHU will be able to improve business synergies with Thailand’s Charoen Pokphand (CP) Group, with which the company has business and capital alliance.
Furthermore, the agreement was signed in line with TPN Food Packaging’s current business strategies and will help the company to make further progress in the field of flexible packaging.
According to Toppan Printing, the decision to enter the Thai flexible packaging sector has been fuelled by the recent economic growth in the ASEAN region.
In recent years, Thailand’s urban areas are witnessing an increasing number of modern commercial stores, such as supermarkets and convenience stores that sell packed food.
The country has also been a major producer of processed foods for some time.
Image: TPN Group’s plant. Photo: courtesy of Toppan Printing.