Rengo to Construct a New Containerboard Mill and Expand Production Capacity in Vietnam
Rengo Co., Ltd. announces that Vina Kraft Paper Co., Ltd., its joint venture in Vietnam, has decided to construct a new production base for containerboard.The total annual demand for containerboard in Vietnam is approximately 3 million tons (2019), and it is expected to grow at an annual rate of 6-7% due to continuing foreign direct investment, mainly in the export industry, and rising domestic consumption.With the newly constructed mill, Vina Kraft Paper will firmly establish its position as a market leader in the Vietnam containerboard market, and aims for sustainable development and growth.
Furthermore, it will also strengthen Vietnam’s domestic integrated production system of containerboard to corrugated box. As “General Packaging Industry (GPI) Rengo,” overseas operations are considered as one of our core businesses and we see Southeast Asia an important strategic location. Rengo Group will reinforce global business expansion and will work to further enhance our presence in the rapidly developing market of Vietnam.
Overview of Vina Kraft Paper Co., Ltd.
|Location||D-6A-CN, My Phuoc Industrial Park No.3, Ben Cat Town,
Binh Duong Province, Vietnam
(40 km Northwest of Ho Chi Minh City)
|Shareholders||Siam Kraft Industry Co., Ltd. 70％
Rengo Co., Ltd. 30％
|Main business||Production and retail of containerboard
(liners and corrugating medium)
|Production capacity||500,000 tons/annum|
Overview of the new plant
|Location||Binh Xuyen Industrial Park, Vinh Phuc Province, Vietnam
(40 km North-northwest of Hanoi)
|Investment||8.133 trillion VND (Approximately 37 billion JPY)|
|Produced items||Containerboard (liners and corrugating medium)|
|Production capacity||370,000 tons/annum
(Company’s total production capacity after completion: 870,000 tons)
|Operation timing||January to March 2024|
About Rengo Group
Rengo is one of the Japan’s top producers of corrugated cardboard, and it also makes paperboard, paperboard packaging, containerboards, cartons, whiteboard, and packaging machinery. Corrugated boxes accounts for roughly 50% of its sales, while paperboard, corrugated board, flexible packaging, and other segments collectively account for the remainder. Rengo operates through roughly 90 plants and offices concentrated in China, Thailand, Singapore, Indonesia, Malaysia, Vietnam, and the US. The company traces its historical roots back to 1909, when it was the first company in Japan to produce corrugated cardboard.