Nippon, SCG Paper Form Joint Venture
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Nippon Paper Industries Co., Japan, this week reported that it signed a Memorandum of Understanding to form a strategic joint venture with SCG Paper Public Co. of Bangkok, Thailand. The investment will represent a Nippon stake of approximately 30% in the joint venture. It is expected to conclude within the first quarter of 2014.
The joint venture, Nippon Paper says, "will collaboratively enhance the competitiveness of SCG Paper's Fibrous Chain, thereby creating further business opportunities and accelerating business growth in Southeast Asia." The company adds that while enhancing the profitability of its ongoing paper business, it will transform its business structure by allocating managerial resources into growing business fields such as packaging and paper processing, lumber, chemicals, and energy. "This joint venture with SCG Paper will create an effective synergistic platform for further business expansion and will lead to sustainable growth of Nippon Paper Group," the company emphasized.
SCG Paper's Fibrous Chain includes forestry, 470,000 metric tpy of pulp production, 570,000 metric tpy of printing and writing paper capacity, and the manufacture of packaging paper and corrugated containers. Revenues from the Fibrous Chain in FY2012 amounted to approximately 17 billion Baht, equivalent to 30% of SCG Paper's consolidated revenues.
Formerly known as The Siam Pulp & Paper Co., SCG Paper was founded in 1979. It operates as a subsidiary of Siam Cement Public Co. Ltd.
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