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SCGP Expands Fiber Packaging Capacity in Vietnam Enhancing Integrated Packaging Solutions to Capture Growing Demand in the Region
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SCGP announces an investment to expand a new corrugated containers production base in the south of Vietnam, with a total investment of Baht 748 million. The investment aims to capture growth opportunities from the continuously expanding fiber packaging market in Vietnam, while enhancing integrated consumer packaging solutions, strengthening competitiveness, and supporting quality growth. Commercial start-up is expected in September 2027.
Mr. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, said that SCGP has continued to pursue its strategy to build growth across ASEAN. Vietnam is considered one of SCGP’s key strategic markets, supported by strong economic growth and continuous inflows of foreign direct investment. The company made its first strategic investment in the south of Vietnam in 2009 by establishing Vina Kraft Paper Company Limited (VKPC), a packaging paper production base in Ho Chi Minh City. In 2016, VKPC expanded its capacity at the same location to support the growing demand for packaging consumption in the region. SCGP later further expanded its business in Vietnam through investments in various packaging businesses, including packaging paper, fiber packaging, foodservice packaging, high performance and polymer packaging, and other related businesses.
To support growth and strengthen its capability to respond to rising consumer packaging demand, SCGP is moving forward with the expansion of high-quality corrugated containers capacity. The facility will feature advanced automated technology to drive production efficiency and operational reliability, with a production capacity of 26,800 tons per year. The new facility will be located within VKPC’s existing plant area in Ho Chi Minh City, Vietnam, with a total investment of VND 604 billion, or approximately Baht 748 million. The first phase of investment will focus on expanding converting capabilities for the fiber packaging business in the south of Vietnam. Commercial operation is expected to begin in September 2027.
This strategic investment will further strengthen SCGP’s ability to serve and capture fiber packaging demand, which is expected to grow by approximately 7% per annum. It will also enhance business competitiveness and elevate the company’s integrated packaging solutions for customers. In addition, by leveraging y’s existing facilities, the new box plant is expected to optimize logistics, inventory management, and operating cost, while enhancing competitiveness and service efficiency along the supply chain.
SCGP is committed to meeting the growing demand for sustainable and innovative packaging by offering integrated solutions across fiber, polymer, and foodservice packaging, tailored to the evolving needs of customers in Vietnam.