Thailand-based SCGP announced that it is moving ahead with an expansion plan to build a new production complex in Vinh Phuc in northern Vietnam for the production of packaging paper.
The total investment amounts to 8,133 billion VND (approx. US$353,500.00).
In a press release, SCGP said, "In order to grow alongside other industries inside Vietnam and to meet increasing demands for packaging products, SCGP has decided to expand through Vina Kraft Paper by building a new major complex in Vinh Phuc — a strategically important area in the northern part of the country, as well as adding packaging paper production facilities to boost capacity by about 370,000 tons a year.
SCGP said the investment is currently under Environmental Impact Assessment (EIA) process and expects the plan to be completed and commercial production to begin in early 2024.
SCGP noted that Vietnam has strong domestic consumption and is an important export base in the region, a big draw for multinational companies to invest their operations there, especially to the northern part of the country. The demand of packaging paper and related packaging products in Vietnam is expected to increase at approximately 6-7% per year during 2021-2024 (source: Frost & Sullivan).
Mr. Wichan Jitpukdee, Chief Executive Officer, SCGP, commented, "Driven by SCGP's existing business model in Vietnam that consists of broad horizontal offerings and deep vertical integration primarily located in the south of Vietnam, our new investment in this production complex will allow us to pursue growth opportunities in the north of Vietnam and the south of China. This new strategic complex will enable potential synergies among SCGP's various businesses in terms of production efficiency and development of integrated packaging solutions, and help us meet the increasing demands for packaging products in the region."
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