Vina Kraft Paper Co., Ltd. (Vietnam), or VKPC, has started the second paper production line, doubling its existing capacity in Vietnam, as the company seeks to tap into growing demand in Southeast Asia.
The firm said in a statement on November 16 that the first paper reel of corrugated medium paper was rolled out at the end of October, ahead of the initially planned second quarter of 2017.
VKPC, a 70:30 joint venture between Siam Kraft Industry Company Limited -- a subsidiary of SCG Packaging -- and Japan’s Rengo Company Limited, invested some $126 million to double the capacity of its paper production plant, located at My Phuoc 3 Industrial Park in the southern province of Binh Duong
The new production line will add an additional 243,500 tons per annum to SCG Packaging’s portfolio and bring the firm’s total packaging paper capacity of 2.6 million tons per annum across strategic ASEAN countries including Thailand, Vietnam and Philippines, said Sangchai Wiriyaumpaiwong, general director of Vina Kraft Paper Co., Ltd. (Vietnam).
Besides VKPC, Sweden-born packaging firm Tetra Pak
has unveiled a plan to invest $110 million in a new plant near HCM City
that will produce 20 billion cartons per annum for liquid dairy and fruit-based beverages, in a move to capitalize on growing demand in the Asia-Pacific region.
According to the Vietnam Packaging Association, the packaging industry in Vietnam is forecast to expand 15-20% annually in the years to come, as the country is considered a new manufacturing hub in the region thanks to new free trade deals.