New Containerboard Mill to be Built in Vietnam

SEATTLE (Scrap Monster): Vina Craft Paper Co. Ltd.- the subsidiary of Rengo Co. Ltd. in Vietnam announced its decision to construct a new containerboard mill in the country, aimed at expanding its production capacity.

The proposed mill will help Vina Kraft Paper to establish its position as a market leader in the country’s containerboard market, in line with its sustainable development and growth initiatives. Furthermore, it will further strengthen domestic integrated production system of containerboard to corrugated box in Vietnam.

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The company considers Southeast Asia as an important strategic location. By enhancing its presence in the rapidly expanding market of Vietnam, the parent group targets global business expansion. The containerboard demand in Vietnam is projected to grow at a rate of 6-7% per annum, triggered by growth in domestic consumption as well as export markets. It must be noted that the annual containerboard demand had totalled approximately 3 million tons in 2019.

The new plant would be located in Binh Xuyen Industrial Park, Vinh Phuc Province, nearly 40 kilometres North-northwest of Hanoi. The production capacity of the mill is expected at around 370,000 tons per annum, thus making the company’s total capacity in Vietnam to 870,000 tons per annum. The mill, to be constructed at an investment of 8.133 trillion VND, is expected to become operational by first quarter of 2024.