Thailand-based cement and building material firm The Siam Cement Public Company (SCC) has received approval to expand its packaging paper operations with an investment of THB5.115bn ($155.23m) in the Philippines.
The company will use the investment for machinery, civil work, financial cost and working capital. It will commence operations in the fourth quarter of 2020.
The investment will add approximately 230,000t of production capacity per annum to the plant in Calumpit, Bulacan, Philippines, which is operated by SCC subsidiary United Pulp and Paper (UPPC).
Investment is expected to double UPPC’s existing capacity and add an annual 2.8 million tonnes to SCC’s total packaging paper capacity in Thailand, Vietnam, and the Philippines.
According to the company, the increase in production capacity will cater to the growing demand for packaging paper in the Philippines, while the country will benefit from the supply of domestic raw materials.
Earlier this month, SCG’s packaging business entered a partnership with Thailand-based retailer Tesco Lotus to recycle old corrugated cartons into paper bags through the Circular Economy concept. The cartons are collected from the retailer’s stores and distribution centres.
The retailer will roll out the paper bags to its customers starting 4 December, as it plans to eliminate plastic bags across its 2,000 stores nationwide.