Showa Denko (SDK) and Thailand beverage maker Carabao Group have formed aluminium can joint venture (JV).

The joint corporation, dubbed Asia Pacific Can Company (APC), will manufacture and sell aluminum cans.

Initially, a capital of Baht700m ($20.7m) is being invested in the JV, which will operate from Thailand.

Foundation stones for the JV's facility were laid by the officials of Showa Denko and Carabao Group.

The formation of Asia Pacific Can had been finalized by three founding parties this March. The aluminium can manufacturing facility, for which the foundation stones were laid, is expected to starts is operations in October next year.

The facility will be located in the Bang Pakong, Chachoengsao Province, the Kingdom of Thailand. It will manufacture aluminium cans mainly for Carabao’s beverages which will be exported outside of Thailand.

Caraboa is planning to expand its presence internationally, especially in Southeast Asian countries, China and the UK.

The JV will support the Thai beverage company in its overseas operations by providing a stable supply of high-quality aluminium cans manufactured using latest technologies.

According to Showa Denko, aluminium can business is ‘growth accelerating’ in its pursuit of a medium-term business plan, ‘Project 2020+’ with business expansion strategy targeted at Southeast Asia.

The Thai drinks company Carabao Group was founded by Aed Carabao and Sathien Setthasit in 2002. 

Aed Carabao has joined hands with Sathien Setthasit to start an energy drinks business. During the time, Thai energy drinks market was being dominated by big brands such as Krating Daeng, which created the global brand Red Bull.

Initially, the duo struggled hard to sell their brand. Making commercials for energy drinks was not allowed in the country and the business handed out samples of their drink to consumers at shops along the streets.

On weekends, they used to conduct karaoke contests and raffles and prizes included expensive jewelry. The drinks business now aims to reach out to international markets across Southeast Asia and Europe.

Image: SAC president Yasushi Tashiro and CBG chairman Sathien Setthasit at the foundation stone-laying ceremony. Photo: Courtesy of SHOWA DENKO K.K.