Thailand's SCG Packaging plans $353 mln Vietnam expansion
20/09/2021 10:13
BANGKOK, Sept 20 (Reuters) - Thailand's SCG Packaging Pcl
(SCGP) SCGP.BK on Monday announced an 11.8 billion baht
($353.93 million) expansion in its packaging paper business in
Vietnam, anticipating growth in demand.
A new facility will be built in Vinh Phuc province in
northern Vietnam, to begin operations in early 2024 and produce
870,000 tonnes of packaging paper per year, up from 500,000,
SCGP said in a statement.
It will be run by Vina Kraft Paper, a joint venture between
SCG Packaging and Japan's Rengo Company 3941.T , of which SCGP
holds 70%.
"Vietnam has strong domestic consumption and is an important
export base in the region, a big draw for multinational
companies to invest their operations there," chief executive
Wichan Jitpukdee said.
Wichan anticipated Vietnamese demand growth of 6% to 7%
annually until 2025.
SCGP, a unit of Thailand's largest industrial conglomerate,
Siam Cement Pcl SCC.BK , said it would use cash and debt to
finance the expansion.
The facility is the latest move by a Thai firm to expand in
Southeast Asia, with Vietnam, a fast-growing country of 98
million people, among the most desirable.
Lender Bank of Ayudhya Pcl BAY.BK last month said it would
acquire a consumer finance company, SHB Finance https://www.reuters.com/article/bank-of-ayudhya-vietnam-idCNL1N2PW0RZ
in Vietnam for $155 million. urn:newsml:reuters.com:*:nL1N2PW0RZ
The pandemic has hit Thailand's badly. In August, the
government cut https://www.reuters.com/article/thailand-economy-gdp-idUSL4N2PL05N
its 2021 economic growth forecast to 0.7 to 1.2% from 1.5 to
2.5%, the third time it has done so.
The Thai economy slumped 6.1% last year. urn:newsml:reuters.com:*:nL4N2PL05N
Vietnam's outlook was brighter https://www.reuters.com/world/asia-pacific/vietnam-minister-sees-2021-gdp-growth-35-40-media-2021-09-15
with the government expecting up to 4% growth urn:newsml:reuters.com:*:nL4N2QH12D
(Reporting by Chayut Setboonsarng; Editing by Martin Petty)
((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))