Thailand-based packaging provider SCG Packaging has acquired Peute Recycling, a Dutch company that recycles and trades packaging material, for around THB2.87bn ($78.4m).

SCG Packaging acquired the 100% stake in Peute through its wholly owned subsidiary SCGP Solutions (Singapore).

Peute is an independent packaging material recycling and trading company that specialises in paper and plastic processing.

The company has the capability to source one million tonnes of recovered paper and 100,000t of recovered plastics a year at its facility in Dordrecht, Netherlands.

Peute is currently planning to relocate the facility to Alblasserdam, near the port of Rotterdam, to double its sourcing capacity and enhance its cost management efficiency.

Last year, the company posted revenue of 250.06m with a profit of around 3.2m.

The acquisition is in line with SCG Packaging’s long-term strategy to bolster all levels of its packaging business, from raw material sourcing and upstream and downstream production to integrated packaging solutions.

It also represents another milestone in the company’s merger and partnership plan.

In a statement, SCG Packaging said: “The investment is aligned with the growing global awareness of sustainability, which leads to significant increase in the usage of recycled materials.

“The ability to directly access greater volumes of recovered paper and plastic will enable SCG Packaging to meet the surging market demands as part of the evolving consumer trends.

“Furthermore, Peute’s expertise in advanced waste management and related technologies would help strengthen SCG Packaging’s efficiency in packaging materials recycling operation in the Association of Southeast Asian Nations (ASEAN).”

SCG Packaging supplies a range of products such as fibre packaging, performance and polymer packaging among others.

The company operates a network of 56 manufacturing facilities in Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK and Spain.

From this month, it will consolidate Peute’s financial performance.