San Miguel: Japan JV partner buys into packaging business

San Miguel Corporation (SMC) of the Philippines has agreed to sell 35% of its entire packaging business to leading Japanese glass and plastics packaging manufacturer Nihon Yamamura Glass (NYG) for an …

San Miguel Corporation (SMC) of the Philippines has agreed to sell 35% of its entire packaging business to leading Japanese glass and plastics packaging manufacturer Nihon Yamamura Glass (NYG) for an undisclosed sum. Under the agreement NYG would gain a minority interest as a strategic equity partner in SMC“s domestic and international packaging businesses. NYG is a long-time joint venture partner of San Miguel in the Philippines as the two companies own and operate the islands“ largest glass plant, San Miguel Yamamura Asia Corporation, and San Miguel Yamamura Fuso Molds Corporation, as well as a glass plant in Vietnam. Apart from Vietnam and the Philippines, NYG is also present in China and Taiwan. The agreement would allow NYG to participate in other packaging formats made by San Miguel such as metal, metal closure, carton, plastics and composites. NYG“s equity injection would give it a 35% stake in San Miguel“s total packaging businesses represented by its domestic and regional operations under San Miguel Packaging Specialists, Inc. and San Miguel Packaging International, Ltd respectively. The expanded partnership will unite the strengths of the two companies in the manufacture and marketing of packaging solutions and products for regional customers. SMC president Ramon Ang said that San Miguel was excited at expanding its partnership with NYG as the resulting joint venture will combine the potential of San Miguel“s diversified packaging business with NYG“s advanced research and technology. “NYG is a very strong partner, with exemplary business philosophy, and a highly professional team”, said Ang adding that “this partnership will enhance our respective companies“ competitive positions and ensure our continued success of the regional packaging industry”. NYG president Koji Yamamura said “this is a significant investment that creates a strong foundation for our joint ambition to become a leading packaging business in Asia, providing us access to countries in the region where San Miguel already has presence”. He said it also strengthens NYG“s commitment to San Miguel“s growth and its long-term strategy for the development of the firm“s business in the Philippines. “Following several successful joint ventures with San Miguel, we are keen to take our investment in the company and the Philippines to the next stage”, he said.