Thailand: Charoen Aksorn Group takes over Norske Skog subsidiary

Company strengthens its integrated printed services

{reg}Charoen Aksorn (CAS) Group took over Norske Skog subsidiary in Thailand for 1 billion baht, aiming to strengthen its integrated printed services. Norske Skog has struggled in Thailand for the last four years, accumulating losses of over 70 million baht. They sold off through a bidding process. CAS won a bid to acquire 94% stake in the Norwegian firm, with the remaining 6% split between Thai Rath Newspaper and Bangkok Bank, reports Bangkok Post.

 

This deal will enable CAS to become Thailand's largest proof-paper provider. Though the Norwegian firm had high operating costs, Norske Skog's paper recycling know-how and innovative printing technology attracted CAS. CAS plans to spend 200-300 million baht on upgrading its printing technology system to reduce costs and product prices.

Norske Skog's factory in Sing Buri province has the capacity to produce 135,000 tonnes of paper per year. 85% of CAS Group's revenue this year would come from domestic consumption, with 15% from exports to emerging countries. "We expect revenue of 2.5 billion baht in 2014, with 65% from the paper product business, up from 50%", said Surapol Dararattanaroj, chief executive of CAS Paper Co, a subsidiary of CAS Group.{/reg}