20 Sept 2021
Thailand’s SCG to Start Expansion Plans Worth $353 Billion in Vietnam
The Index Today
Thailand’s SCG Packaging Pcl has announced expansion plans worth 11.8 billion baht with its paper business in Vietnam. The new plans comes as growth in demand is expected to grow soon.
To start operations as early as 2024, new facilities will be built in Vinh Phuc province in Vietnam. These facilities will be used to produce 870,000 tons of packaging paper per year. This figure is much higher than the previous production capacity of only 500,000.
SCG will form a partnership with Vina Kraft Paper and Japan’s Rengo Company which is currently holds 70% of. Chief executive Wichan Jitpukdee said, “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.” It is expected that the demand will grow as much as 6% and 7% by the year 2015.
SCGP is one of Thailand’s largest industrial conglomerate and will use cash and other financing facilities to finance the expansion plans. These plans are among the many latest moves to expand the company’s footings in Southeast Asia.