Thailand’s SCG Packaging Plc (SCGP) will invest 11.79 billion baht (352.9 million USD) to develop a paper factory in its new production complex in northern Vietnam, which has grown into one of the region's major export centres, according to the Bangkok Post newspaper on September 21.

Illustrative image (Photo: VNA)

Thailand’s SCG Packaging Plc (SCGP) will invest 11.79 billion baht (352.9 million USD) to develop a paper factory in its new production complex in northern Vietnam, which has grown into one of the region's major export centres, according to the Bangkok Post newspaper on September 21.

The investment, which will be made through its Vina Kraft Paper Co (VKPC), is aimed at increasing packaging paper production capacity by about 370,000 tonnes a year.

CEO of the SCGP Wichan Jitpukdee expected the new production facility, which will be located in Vinh Phuc province, to start operations in early 2024.

Demand for packaging paper and related packaging products in the country is expected to increase by approximately 6-7 percent a year during 2021-2024, according to the SCGP.

Since 2009, SCGP has rolled out its strategic investment plan in Vietnam by establishing packaging paper production based in the south of the country through VKPC.

The company is a 70:30 joint venture between SCGP and Rengo Co from Japan.

SCGP is confident that it could earn 100 billion baht this year from domestic and overseas businesses as well as merger and acquisition deals, despite the prolonged COVID-19 outbreak./.