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Thai group expects increased business in Vietnam

Increasing investment in Vietnam is part of the Thai Siam Cement Group (SCG)’s strategy to expand its business activities, said Chaovalit Ekabut, President of SCG Paper, a subsidiary of SCG.
Increasing investment in Vietnam ispart of the Thai Siam Cement Group (SCG)’s strategy to expand itsbusiness activities, said Chaovalit Ekabut, President of SCG Paper, asubsidiary of SCG.

Addressing the launchingceremony of VINA Kraft Paper Co., Ltd. in Binh Duong province recently,President Chaovalit said that the 8-10 percent growth rate of Vietnam’s wrapping paper market compared to 4 percent in Thailand is thereason behind his company’s investment plan in Vietnam .

The 6 billion Baht (181.1 million USD) kraft paper mill in the southernprovince of Binh Duong is a joint-venture between SCG Paper and RengoCo., Ltd., one of Japan ’s largest paper and packaging companies. Ithas a design capacity of 220,000 tonnes of paper per year.

The inauguration of the mill will make SCG Paper the largest kraftpaper producer in ASEAN with a combined capacity of 1.4 million tonnesper year.

According to VINA Kraft Paper Co., Ltd. General Director ChalokpornPhalajivin, 90 percent of the company’s product will be sold in Vietnamand the rest will be exported to Cambodia .

VINA Kraft is expected to gross 2.5 billion Baht this year when Vietnam’s paper demand is forecast to increase to 1 million tonnes from920,000 tonnes last year./.

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