Cheng Loong Corp, Taiwan (China)’s biggest industrial papermaker, plans to put a new factory into operation in Vietnam in the first half of 2018, with an annual capacity of 300,000 tons, according to the Taipei Times.
Cheng Loong plans to invest $240 million in the factory, which will mainly produce industrial paper for clients in Southeast Asia, the firm’s President Tong-ho Tsai was quoted as saying at an investors’ conference on October 19.
The factory is to be built in the southern province of Binh Duong
, which is adjacent to Ho Chi Minh City
’s the country’s economic hub, to tap robust demand from manufacturing companies in the province.
“We hope to develop a complete supply chain in Vietnam by building up the new plant, as our existing factories in the country are only making downstream products,” the president added.
The company plans to manufacture diversified products at the plant in the long term, with annual capacity expected to reach one million tons per year, he said.
Headquartered in New Taipei City, the 57-year-old firm now operates 12 factories in Taiwan, 13 in China and three in Vietnam.
Industrial paper and packaging paper products account for nearly 50% and 40% of its revenue, respectively.
Vietnam’s Ministry of Industry and Trade in July proposed that the government scrap a $1.2-billion paper mill complex developed by Hong Kong’s Lee & Man Paper Manufacturing Limited in the Mekong Delta province of Hau Giang due to concerns over possible pollution.