The investment will be used to build a new production complex in northern Vietnam, as well as establish a packaging paper production base within the complex
Thailand-based SCG Packaging is set to invest up to THB11.79bn ($353m) to expand its packaging paper business in Vietnam.
SCG will use the funds to build a new production complex in the north of Vietnam, as well as establish a packaging paper production base within the complex.
The company said that it has expanded its businesses in Vietnam by investing in different packaging operations, including packaging paper, fibre-based packaging, foodservice packaging, performance and polymer packaging.
SCG, which will expand through Vina Kraft Paper (VKPC), will construct a new major complex in Vinh Phuc, a strategic location in the northern part of the country.
The company will also build packaging paper production facilities to accelerate capacity by around 370,000 tons per year.
The amount will be used for the project’s machinery, civil work, land, financial cost, working capital of advanced packaging paper production technology and infrastructures.
At present, the investment is under Environmental Impact Assessment (EIA) process.
Expected to commence in early 2024, the new commercial operations will increase VKPC’s total packaging paper capacity to 870,000 tons per annum.
SCG Packaging CEO Wichan Jitpukdee said: “SCGP has launched a growth strategy in ASEAN, especially in Vietnam with its high growth potential.
“Since 2009 we have launched a strategic investment plan thereby establishing packaging paper production based in the south of Vietnam through Vina Kraft Paper Company Limited (VKPC).
“Based in Bin Duong, the gateway to Ho Chi Minh City, the company is a 70:30 joint venture between SCGP and Rengo Company Limited (Japan).”