Bangkok--27 May--TCC Capital Land
Acquisition to facilitate penetration into Vietnamese and Malaysian markets
Berli Jucker Public Company Limited (BJC), today announced an official joint venture with Owen-Illinois, Inc. (NYSE:OI), the world's largest glass packaging manufacturer to stage a significant expansion of BJC's presence in Thailand and Southeast Asia.
BJC and O-I joint venture has entered an agreement to purchase Fraser & Neave Holdings Bhd.'s Malaya Glass operations with four operating plants situated in Saraburi, Thailand; Sichuan Province, China; Johor Bahru, Malaysia; and Ho Chi Minh City, Vietnam. Total cost of the transaction, after consideration of debt and minority interests, is worth US$221.7 million of which US$89.3 million is BJC's share. The four plants, with approximately 1,900 employees, manufacture glass containers for beer, non alcoholic beverages and food markets. In 2009 Malaya glass operations registered sales of US$126 million.
BJC and O-I will jointly manage the operations in Malaysia and Vietnam at 50/50 ratio. BJC will assume majority ownership of the operations in Thailand and manage the Thai plant as part of the existing BJC operations, while the Chinese plant will be managed as a part of the existing O-I operations in China.
In Thailand, BJC owns Thai Glass Industries Public Company Limited (TGI), the largest glass packaging manufacturer in the country and one of the largest glass manufacturers in the region, operating 8 furnaces with capacity over 2,400 tons per day. BJC and O-I have had a close technical cooperation for the last decade, and are contemplating to further upgrade this collaboration.
"BJC is focusing our regional expansion in Southeast Asia particularly in Indochina and Malaysia. This acquisition will further strengthen our foothold in Vietnam and Malaysia, where we today have established trading and manufacturing operation in industrial and consumer products. Together with our existing facilities at Thai Glass Industries, BJC will be the largest producer of glass containers in Southeast Asia." said Mr. Aswin Techajareonvikul, President of BJC.
"This acquisition is aligned with our strategic objectives to seek leadership standing in China and Southeast Asia" said O-I Chairman and CEO Al Stroucken. "The plant in Sichuan enhances our presence in China, and the joint venture offers an instant competitive edge in the important growing markets of Vietnam and Malaysia. We expect to see an immediate positive impact on our earnings as a result of this acquisition."
"During the past few years, BJC International has expanded its operations in Vietnam and Malaysia. The acquisition of Malaya Glass is a further exciting development in BJC International's ambition to build a strong foothold in South East Asia", said Mr. Peter E. Romhild, Senior Executive Vice President of BJC and President of BJC International Company Limited, a wholly owned subsidiary of Berli Jucker Public Company Limited.
The purchase of Malaya Glass complements existing regional capabilities and provides customer access to an expanded footprint and leading glassmaking technologies.
"We are excited about the new opportunities this creates for our customers," said Mr. Aswin. "We can boost the productivity and quality at these well-run operations by applying BJC and O-I's technology and know-how, and this will enhance the breadth of offerings we provide in the region. New and existing customers will benefit from this expansion."
Deutsche Bank advised BJC and O-I in connection with the Malaya Glass acquisition, while Weerawong, Chinnavat & Peangpanor was legal advisors.
About BJC
BJC has more than 6,000 employees operating in Thailand, Malaysia, Vietnam and Myanmer. BJC owns Thai Glass Industries Public Company Limited (TGI), the largest glass packaging manufacturer in Thailand. BJC represents many world leading international partners in marketing, sales and distribution of healthcare and technical products. The company also produces its own brands that are highly recognized in South East Asian market, such as Tasto potato chips, Dozo rice crackers, Cellox tissue paper products, and Parrot soap products. For more information, visit www.bjc.co.th.
For more information, contact:
Ms. Kamonwan Sivaraksa Company Secretary +66 2 367 1455 kamonwas@bjc.co.th