Stock Groups

Thailand’s SCG Packaging plans $353 million Vietnam expansion By Reuters


© Reuters.

BANGKOK, Reuters – SCG Packaging (NYSE 🙂 Pcl announced Monday a 11.8 billion baht ($353.93million) expansion of its Vietnam packaging paper business. This was in anticipation of growing demand.

In Vinh Phuc, northern Vietnam, a new plant will be constructed. It is expected to start operations by 2024. The facility, which produces 870,000 tons of packaging paper annually, has increased from the current 500,000 production, SCGP stated in a statement.

Vina Kraft Paper (a joint venture formed by SCG Packaging with Japan’s Rengo Company) will run it. SCGP has 70%.

Wichan Jitpukdee chief executive stated that Vietnam is a strong consumer and is an important regional export market. It will be a major draw to multinational companies looking for investment opportunities.

Wichan predicted that Vietnam would experience a 6%-7% increase in demand between now and 2025.

SCGP, an affiliate of Siam Cement Pcl in Thailand, stated it would finance its expansion using cash and debt.

A Thai company has recently expanded in Southeast Asia with Vietnam as the latest target. Vietnam is a country that’s growing rapidly and home to 98 million people. This makes it one of the most attractive countries.

Lender Bank of Ayudhya Pcl last month said it would acquire a consumer finance company, SHB Finance in Vietnam for $155 million.

Thailand has been badly affected by the pandemic. In August, the government cut its 2021 economic growth forecast to 0.7 to 1.2% from 1.5 to 2.5%, the third time it has done so.

Last year, the Thai economy suffered a 6.1% slump.

Vietnam’s outlook was brighter with the government expecting up to 4% growth

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs are stocks, indexes and futures. Prices are provided not by the exchanges. However, market makers provide accurate prices. This means prices can be inaccurate and could differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.