Thai packaging firm eyes $353-mln expansion in Vietnam
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Thai company SCG Packaging has announced plans to invest $353 million to expand in Vietnam.
It will build a new plant in the northern province of Vinh Phuc, which will increase its capacity by 74 percent to 870,000 tons of packaging paper a year when it goes on stream in 2024.
It will be operated by Vina Kraft Paper, a joint venture with Japan’s Rengo Company in which SCGP holds 70 percent.
Vietnam is both a big consumer and exporter in the region, making it a big draw for multinational investors, CSGP’s chief executive, Wichan Jitpukdee, said.
The country’s demand for packaging paper and related products is expected to grow at 6-7 percent a year in 2021-24, SCG Packaging estimates.
Questions & Answers
Q.What is the total investment SCG Packaging plans to make in Vietnam?
What is the total investment SCG Packaging plans to make in Vietnam?
SCG Packaging intends to invest $353 million in its expansion efforts in Vietnam. This investment is earmarked for building a new plant in the northern province of Vinh Phuc to boost production capacity.
Q.What will be the increased production capacity of packaging paper after the new plant is operational?
What will be the increased production capacity of packaging paper after the new plant is operational?
After the new plant goes on stream in 2024, the company's packaging paper capacity will increase by 74 percent. This expansion will bring the total production to 870,000 tons of packaging paper annually.
Q.Who will operate the new plant being built in Vinh Phuc province?
Who will operate the new plant being built in Vinh Phuc province?
The new plant will be operated by Vina Kraft Paper. This entity is a joint venture with Japan’s Rengo Company, in which SCGP holds a controlling 70 percent stake.
Q.What growth rate is anticipated for packaging paper demand in Vietnam in the coming years?
What growth rate is anticipated for packaging paper demand in Vietnam in the coming years?
SCG Packaging estimates that the demand for packaging paper and related products in Vietnam is expected to grow by 6-7 percent annually. This growth is projected for the period between 2021 and 2024.
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