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Vina Kraft Paper doubles capacity in Vietnam

Released at: 07:00, 18/11/2016

Vina Kraft Paper doubles capacity in Vietnam

Photo: SCG

Second production line opened in October.

by Luong Nhi

Vina Kraft Paper, a subsidiary of SCG Packaging, has doubled its existing capacity in Vietnam after opening a second paper production line.

The first reel of corrugated medium paper was rolled out at the end of October, which was initially expected to be in the second quarter of 2017.

“The new machinery allows SCG Packaging to add more 243,500 tons per annum to its portfolio through newly-installed capacity and gains from efficiency optimization, which doubles its existing capacity in Vietnam and results in total packaging paper capacity of 2.6 million tons per annum in strategic ASEAN countries, including Thailand, Vietnam and the Philippines,” said Mr. Sangchai Wiriyaumpaiwong, General Director of Vina Kraft Paper in Vietnam.

He added that this reaffirms SCG Packaging’s strong leadership in the high-growth Vietnam market as the largest high-quality packaging paper producer. “With strong commitments in sustainability, we put environmental awareness at the forefront,” he emphasized.

The new facility is being carried out along with an environmentally-friendly self-sufficient co-generator power plant, a raw material preparation plant, and a high-standard waste treatment plant.

VKPC is a 70:30 joint venture between the Siam Kraft Industry Company Limited (a subsidiary of SCG Packaging) and the Rengo Company Limited from Japan. It is located at the My Phuoc 3 Industrial Park in southern Binh Duong province, 45 km from Ho Chi Minh City, and has been the leading producer in Vietnam since 2009.

With a total of 20 companies in Vietnam and approximately 6,900 employees, SCG offers a variety of premium products and services. Available products in cement-building materials include concrete roofing, fiber cement boards, fiber-cement wood substitute products for floors and ceilings, white cement, ready-mixed concrete under the SCG brand, ceramic wall and floor tiles under the COTTO & Prime brand, and sanitary ware, fittings and bathroom fixtures under the COTTO brand.

In the packaging business, available products are reading and writing paper under the IDEA brand and corrugated containers, kraft paper, and flexible packaging. In the chemicals business, available products are downstream chemicals products such as PE&PP, XLPE, PVC resin and compounds, etc. SCG also has a building materials showroom in Hanoi.

“We see a bright future for markets across the region, with steady growth rates,” said Mr. Roongrote Rangsiyopash, President and CEO of SCG. “Especially in Vietnam, demand for building materials and packaging has risen on the back of the boom in the construction industry, with several infrastructure, residential, and industrial projects, as the country has become a key production base of the world.”

SCG’s second quarter report showed total assets in Vietnam of VND19.177 trillion ($872 million), an increase of 9 per cent year-on-year. Revenue from packaging sales stood at VND3.876 trillion ($176 million), an 11 per cent increase year-on-year. First half revenue from sales was VND7.212 trillion ($325 million).

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