SCG Paper plans second plant in Vietnam

Paper Recycling  |  2011-03-15 09:39:22   |   By

SCG Paper is planning for a second plant in Vietnam considering the demand for paper in the country may increase up to 1.5 %

HANOI (Scrap Monster): SCG Paper is planning for a second plant in Vietnam considering the demand for paper in the country may increase up to 1.5 %. The new plant will have an investment of Bt4 billion to serve rising domestic demand for industrial paper driven by economic expansion.

Demand for paper in Vietnam was one million tonnes a year and surging 10-11 per cent per year, while local production averages 800,000 tonnes a year.

Vietnam is one of the world's fast-growing economies and one of the Asean countries that has been given importance by foreign investors. The new plant with estimated capacity of 220,000 tonnes annually would likely be located on the site of the first plant, which uses 60 per cent of the space. It would need two years of construction after approval by the Board of Investment.

About 95 per cent of the raw materials for industrial paper come from recycled paper and 5 per cent from pulp and paper. As part of SCG's five-year business plan for expansion in Asean, the group was seeking possible merger and acquisition deals in Vietnam, nationmultimedia.com reported.