Bangkok – SCG Chemicals Co. Ltd, a leading Thai petrochemicals manufacturer, is raising its stake in Bangkok Synthetics Co. Ltd (BST), a producer of mixed C4 products such as butadiene, nitrile latex and synthetic rubber.
In a 17 Sept filing with the Stock Exchange of Thailand, SCG said it had agreed to acquire 5.37% of BST shares for a sum of BHT1.6 billion (€42 million).
The transaction, set for completion by the end of the month, will raise SCG’s total shares in the rubber maker to 54.20%.
According to the filing, BST is located in Map-Ta-Phut industrial estate in the Eastern Seaboard of Thailand.
The company supplies products to a number of markets including the medical gloves industry and manufacturers of fuel-efficient green tires.
“As BST is currently receiving its main raw material from SCG Chemicals’ subsidiary, increasing a stake in BST will allow SCG Chemicals to further add value to its integrated chemicals chain,” said the company.
In 2020, BST reported sales of BHT10.1 billion and net profit of BHT920 million. In the first half of 2021, the chemicals supplier reported revenues of BHT10.6 billion and net profit of BHT3.9 billion.
Established in 1991, BST is claimed to be the largest producer of mixed C4 products in the Southeast Asia region.