Nawaplastic to become majority shareholder at Binh Minh Plastic
Nawaplastic Industries, a subsidiary of Thailand`s Siam Cement Group (SCG), has successfully increased its shareholdings at Binh Minh Plastic to 50.9%, announced the Group.
"The move is considered a major step in expanding the high value added products production base to drive growth in ASEAN," said Roongrote Rangsiyopash, President and CEO of SCG in the Group's quarterly Operating Results report.
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In a recent move, Nawaplastic registered to purchase an additional of 818,609 shares of Binh Minh Plastic, taking its shareholdings to over 41.66 million shares or 50.89% of charter capital.
Established in 1977, Binh Minh Plastics has cemented its position as the country's leading manufacturer and trader of plastic pipes and fittings. The government last year removed the limit of foreign ownership in Binh Minh Plastics, which was previously capped at 49%.
Apart from Nawaplastic, its other investors include Franklin Templeton Investments that owns 10.78%. Nawaplastic had earlier divested its entire 24% stake in Tien Phong Plastic JSC, a rival of Binh Minh Plastic, for more than VND1.5 trillion (US$66 million). As of 2017, SCG has invested about US$121 million in Vietnam's plastic industry.
The Thai group also holds shares in a number of companies specializing in the production of household plastics, such as Viet-Thai Plastchem, TPC Vina Chemical and Plastic Corporation, and Minh Thai House Component.
In 2017, Binh Minh Plastic's revenue stood at VND4 trillion (US$176 million), up 10% year-on-year while after-tax profit was only VND471 billion (US$20.7 million), down 25% compared to the previous year, stated the audited financial report.
Binh Minh Plastic set revenue target in 2018 at VND4.3 trillion (US$189 million), while pre-tax profit is estimated at VND600 billion (US$26.3 million), increasing 6% and 3% compared to 2017, respectively.
The plastic firm expected to allocate VND380 billion (US$16.7 million) for future investment, said the company's document in prepared for the annual general meeting.
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