Showa Denko set up new $44 million facility in Vietnam

February 14, 2017 | 21:00

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On February 14, 2017, Japanese Aluminium Can Corporation (SAC), a consolidated subsidiary of Japanese Showa Denko (SDK), announced establishing its second Vietnamese production plant.

To be located in Quang Nam province in Central Vietnam, the facility will produce aluminium cans. According to the company press release, the new production line will have a capacity of 700 million cans a year.

In addition, SAC will install new production lines in its first factory, Hanacans JSC in Bac Ninh province, to bring total production to an annual two billion cans by October 2018. The total investment in the two facilities is expected to be JPY5 billion ($44.04 million).

Mother company SDK’s long-term plans in Vietnam has been stressed in its medium-term business plan “Project 2020+”, where already in 2015 it expressed intent for a capital expansion in its Vietnamese aluminium can factory (Hanacans), aiming to produce for existing and new domestic and international markets.

After the 2014 acquisition of the first production line Hanacans, SAC has been continuously increasing sales, mostly in Northern Vietnam, to the point where operation rates have been pushing the limits of production capacity since the second half of 2016.

Picking Quang Nam province for the new plant aligned comfortably with strategic considerations. On one hand, the Vietnamese government and the provincial authorities offer favourable conditions, due to the initiative to enhance industrial infrastructure and attract businesses to the location.

On the other hand, SAC’s Hanacans has already started expanding shipments to Central Vietnam and establishing a new facility closer to its newest customers is only logical.

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