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SCGP Expands Fiber Packaging Business in Vietnam to Address Rising Demand
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Per-ticker News Sentiment Indicator
- ORother · neutral · high
The article discusses an expansion by SCGP, which has no material impact on the business operations or financial outlook of OR.
- SCCm_and_a · positive · med
SCGP is expanding its fiber packaging business in Vietnam with a THB 748 million investment to capture growing demand, which positively impacts its parent company SCC.
- SCGPm_and_a · positive · med
SCGP is expanding its fiber packaging capacity in Vietnam with a THB 748 million investment to capture regional demand growth and improve operational efficiency.
Article body
SCG Packaging Public Company Limited (SET:
SCGP
) has informed the Stock Exchange of Thailand on an expansion of the fiber packaging business in the south of Vietnam. This investment is aligned with SCGP’s strategy to expand consumer packaging business in ASEAN where Vietnam’s strong economic growth and continuous inflow of foreign direct investment make it a strategic market for SCGP.
This investment in a new box plant will be made through Vina Kraft Paper Co., Ltd. (VKPC), a 70:30 joint venture between SCGP’s wholly owned subsidiary Siam Kraft Industry Co., Ltd. and Rengo Company Limited, Japan. The VND 604 billion (or approximately THB 748 million) investment will be made at VKPC’s existing packaging paper facility in Ho Chi Minh.
This first phase of investment focuses on expanding converting capabilities by adding 26,800 tons per year of high-quality corrugated container capacity to SCGP’s existing fiber packaging operations. The facility will feature advanced automated technology to drive production efficiency and operational reliability.
Commercial start-up is expected in September 2027. This strategic investment strengthens SCGP’s market position by addressing fiber packaging demand growth of approximately 7% per annum, enhancing integration with its packaging paper business, and delivering comprehensive packaging solutions to customers.
By leveraging VKPC’s existing facilities, the new box plant is expected to optimize logistics, inventory, and operating cost, enhancing competitiveness and service levels along the supply chain.