SCG Packaging to invest $355 million into new packaging paper complex in Vietnam
16:43 | 21/09/2021 Print Article
SCG Packaging (SCGP), Thailand's largest packaging solutions provider under the conglomerate Siam Cement Group (SCG), announced today that it will inject VND8.13 trillion ($353.48 million) into a new packaging paper complex in the northern province of Vinh Phuc.
|SCG Packaging is ramping up investment in Vietnam |
The investment will be used to procure machinery and cover civil work, financial costs, and working capital. The state-of-the-art packaging paper production technology includes premium grade products.
In addition, the funds will also be used to acquire land and construct infrastructure, which will be the foundation for future expansion and enhanced competitive integration.
Slated to put into commercial operation in early 2024, the complex will be run by Vina Kraft Paper Co., Ltd. (VKPC), a 70:30 joint venture between SCGP and Japan's Rengo Co., Ltd.
VKPC's first investment in Vietnam commenced operation in 2009, followed by the 2016 expansion which doubled its original capacity to the current 500,000 tonnes per year. The expansion to North Vietnam will bring VKPC’s total capacity to 870,000 tonnes per year in 2024.
The new investment reflects the interest of SCGP in Vietnam's packaging and plastics industry. During the global crisis, the company has stepped up its buying spree in Vietnam by acquiring Bien Hoa Packaging in 2020 and Duy Tan Plastic in 2021.