In its "Capital Efficiency Initiative 2027," Toyo Seikan Group has set the goal of "optimizing its business portfolio" and is investing management resources in growth areas. In August 2024, with an eye toward strategic expansion of its filling business in Asia, where future growth is expected, the Group acquired PREMIER CENTRE GROUP SDN. BHD. (hereinafter "PCG"), a major Malaysian contract filling manufacturer that provides OEM/ODM * services for home care and personal care products. Through collaboration with PCG, the Group will establish a service structure that comprehensively handles both containers and contents, aiming to provide further value, create business synergies, and create new markets.
* OEM (Original Equipment Manufacturing): A contractor manufactures products under the client's brand.
ODM (Original Design Manufacturing): A contractor designs and manufactures products under the client's brand.
Year of establishment: 1972
Location: Selangor, Malaysia
Business: Contract filling business for home care and personal care products
Characteristics: Malaysia's largest OEM/ODM company, offering a one-stop service from formulation development, raw material procurement, filling, to quality control, meeting the needs of numerous global customers.
-By use, home care and fabric care account for approximately 70% of the total.
By region, approximately 90% of the products are exported to Malaysia and Singapore, with exports also going to the Philippines, Australia, New Zealand and the UAE.
The acquisition of PCG was aimed at fully entering the growing market of Southeast Asia and growth areas such as home care and personal care. Malaysia in particular is expected to continue to experience economic and population growth, and its income level is relatively high within the region, so there are high expectations for future market expansion. PCG has a stable local customer base, making this a significant acquisition for the Group not only in terms of contributing to earnings but also in terms of strengthening its portfolio by mutually complementing its existing businesses.
Several Toyo Seikan Group companies operate in Thailand, a neighboring country to Malaysia where PCG is based. In the home care and personal care field, Toyo Filling International Co., Ltd. (hereinafter "TFI"), which operates a filling business, and Toyo Seikan (Thailand) Co., Ltd., which manufactures and sells plastic containers, have established operations there, and we expect to create synergies through collaboration between these two companies. While both companies are engaged in the same filling business, they have different target customer segments, lot sizes, and facility characteristics, creating a complementary relationship. This will enable us to offer a wide range of customer proposals that leverage each company's strengths while avoiding competition. It will also lead to the establishment of a flexible service provision system throughout Asia.
In addition, the strict halal certification that PCG has obtained from Malaysia will serve as a stepping stone to seizing new business opportunities in Southeast Asia and the Middle East, regions that are expected to enjoy demographic benefits in the future.
PREMIER CENTER GROUP SDN. BHD.
Director
Toshiki Tazawa
Rising prices in Southeast Asian countries are causing price competition to expand and intensify throughout the region. In this environment, PCG will take advantage of Malaysia's growing population and economic growth, further refining the quality and responsiveness it has cultivated in its home care and personal care contract filling business, and maintaining its revenue base by living up to the trust of its customers.
At the same time, we have positioned the creation of the next growth pillar as PCG's top priority. Through these two pillars - combining Toyo Seikan Group 's cutting-edge technology and extensive customer network with PCG's manufacturing and development capabilities, and collaborating with TFI, which operates a filling business in neighboring Thailand, and with group companies involved in Packaging Business- we will create new added value, achieve sustainable growth, and contribute to local communities.
PREMIER CENTER GROUP SDN. BHD.
COO & Director
Thanaraj A/L Saravana
PCG has embarked on a new chapter as a member of Toyo Seikan Group since 2024. Starting from our original business of container manufacturing, we have expanded into the OEM/ODM field. Building on the experience and track record we have cultivated over the past 50 years since our founding, we continue to evolve as a "one-stop center" that meets our customers' diverse needs. With solid technical capabilities and a team equipped with flexible and swift response capabilities, we have become a "value creation partner" that goes beyond the scope of contract manufacturing. Through our collaboration with Toyo Seikan Group, we will achieve further growth and innovation, and continue to move forward alongside our customers, even in a rapidly changing market environment. As a trusted, innovative partner, we will support our customers in realizing their ideas and enhancing their brand value through collaboration, experience, and excellence.
- PREMIER CENTRE GROUP SDN. BHD. Website
- [Disclosed on August 2, 2024] (Progress of Disclosures) Notice Concerning Completion of Acquisition of Premier Centre Group Sdn. Bhd. (Subsidiary)
- [Disclosed on February 29, 2024] Notice regarding the acquisition of shares in Premier Centre Group Sdn. Bhd. (making it a subsidiary)