Vina Kraft Paper (VKPC) builds new facility to double capacity in Vietnam.
Vina Kraft Paper (VKPC), a 70:30 joint venture between SCG and the Rengo Company from Japan, is to invest $126 million to double its packaging paper capacity in My Phuoc 3 Industrial Zone, Ben Cat Province Binh Duong province, Vietnam.
The investment is the latest by SCG in the country. SCG's total packaging paper capacity throughout ASEAN will reach 2.6 million tons per year with the investment, which will see it maintain its leading position in the region.
The new production facility is scheduled begin operations in the second quarter of 2017 in My Phuoc 3 industrial zone in Binh Duong province and will meet Vietnam's rapid growth in demand for packaging paper, a field in which it is a net importer.
"SCG in Vietnam currently focuses on penetrating further into the country and building the SCG brand to strengthen and sustain its 'brand-in-mind' position among Vietnamese consumers," said Mr. Kan Trakulhoon, President and CEO of SCG.
He also expressed his confidence in the growing ASEAN economy, which continues on an upwards trajectory. "SCG's investment regionally will also continue to grow," he said. The group's revenue from exports to other ASEAN markets stood at $421 million in the first quarter of 2015, an increase of 2 per cent year-on-year.
In SCG's combined ASEAN operations, excluding Thailand, revenue from sales in the first quarter of 2015 was $318 million, or 10 per cent of its total sales revenue.