Thailand-based Siam Cement Group (SCG) has formed a BHT2.2bn ($67m) joint venture (JV) with Nippon Paper Industries (NPI) in Japan to set up Siam Nippon Industrial Paper (SNP) plant, which will commence operations by mid-2014.
The plant will come up in Ratchaburi's Ban Pong district in Thailand and will produce food packaging and other glazed-paper products with an annual capacity of 43,000t.
SCG chief financial officer and vice-president for finance and investment Chaovalit Ekabut said its subsidiary SCG Paper will hold a 45% stake in the joint venture, while SNP and two Nippon Paper subsidiaries will hold a combined stake of 55%.
The latest acquisition makes SCG Paper third in corrugated production capacity for Vietnam. With extensive investments in the Philippines, Vietnam, Malaysia, and Singapore, the company plans to sustain its position in Asean paper and packaging.
Machine-glazed paper is primarily used in hygienic packaging with applications in the food and medical industry and has a high-gloss finish and basis weight of 20-80g.
SCG Paper's products comprise pulp, printing and writing paper, packaging paper and corrugated cartons. In 2011, the company acquired Vietnam's corrugated container producer, Alcamax Packaging.
