SCGP Invests ฿11Bn in New Complex in North Vietnam to Support Future Expansions
SCGP invests 11 billion baht in new complex located in North Vietnam to be the foundation for future expansions and enhanced competitive integration
SCGP invests 11 billion baht in new complex located in North Vietnam to be the foundation for future expansions and enhanced competitive integration
20 ก.ย. 2564

SCG Packaging Public Company Limited (SCGP) announces investment by Vina Kraft Paper Company Limited (VKPC) towards a new complex located in Vinh Phuc, North Vietnam, currently under EIA process, while commercial start-up is expected in early 2024. 
The 8,133 billion VND (approximately 11,793 million Baht) investment budget will be for machinery, civil work, financial cost, and working capital of 370,000 tons per year. The state-of-the-art packaging paper production technology includes premium grade products (e.g., lightweight paper). In addition, the budget included land and infrastructures, which will be the foundation for future expansions and enhanced competitive integration.  
VKPC is Vietnam’s leading packaging paper producer and is a 70:30 joint venture between Siam Kraft Industry Company Limited (100% subsidiary of SCGP) and Rengo Company Limited (Japan). VKPC’s first investment in Vietnam commenced operation in 2009, followed by the 2016 expansion in which doubled the original capacity to the current 500,000 tons per year. The expansion to North Vietnam will bring VKPC’s total capacity to 870,000 tons per year in 2024.
Vietnam is one of the most dynamic economies globally, buoyant by vibrant domestic and export sectors. Furthermore, as multinational companies actively pursue foreign direct investments in North Vietnam, this is expected to support the 6-7% per annum growth of packaging paper and related packaging products during 2021-2025.
SCGP has been continuously expanding its Vietnam portfolio with an estimated Pro-Forma 2021 revenue of over 15,000 million Baht (including recent acquisitions disclosed to the Stock Exchange of Thailand). SCGP’s existing business model in Vietnam consists of broad horizontal offerings and deep vertical integration primarily located in South Vietnam, and the new complex in North Vietnam will compound these efforts. 
SCGP is committed to fulfilling and facilitating the increasing preference for sustainable packaging through products ranging from fiber-based packaging, performance and polymer packaging, and other outstanding solutions. Operating over 50 facilities across Thailand, Vietnam, Indonesia, the Philippines, and Malaysia, SCGP is listed on the Stock Exchange of Thailand and has a current market capitalization of approximately $8.4billion (280,000 million Baht). 