Rengo Announces Plans to Build New Containerboard Mill in Vietnam
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Rengo Co., Ltd. in late-September announced that its joint venture in Vietnam, Vina Kraft Paper Co., Ltd., plans to build a new containerboard mill in Binh Xuyen Industrial Park, Vinh Phuc Province, Vietnam.
Rengo holds a 30% stake in the joint venture and Siam Kraft Industry Co., Ltd. holds 70%.
The total investment in the new mill, which will have the capacity to produce 370,000 tons per year of containerboard (liner and corrugating medium), will be 8.133 trillion VND (approx. 37 billion JPY).
According to Rengo, the total annual demand for containerboard in Vietnam is approximately 3 million tons (2019), and demand is expected to grow at an annual rate of 6-7% due to continuing foreign direct investment, mainly in the export industry, and rising domestic consumption.
In a press release, Rengo said, "With the newly constructed mill, Vina Kraft Paper will firmly establish its position as a market leader in the Vietnam containerboard market, and aims for sustainable development and growth. Furthermore, it will also strengthen Vietnam's domestic integrated production system of containerboard to corrugated box."
Currently, Vina Kraft Paper operates two mills in Vietnam which have the combined capacity to produce 500,000 tpy of containerboard.
