Thai Siam Cement Group (SCG) has teamed up with with Japanese Nippon Paper Industries (NPI) to set up a new a new machine-glazed paper plant, investing BHT2.2bn ($67m).
The new Siam Nippon Industrial Paper (SNP) plant, will be located in Ratchaburi's Ban Pong district in Thailand, and produce food packaging and other glazed-paper products, with an estimated annual production capacity of 43,000t.
According to Nippon, the plant is likely to commence operations by mid-2014.
SCG chief financial officer and vice-president for finance and investment Chaovalit Ekabut said its subsidiary SCG Paper will hold a 45% stake in the JV, while SNP and two Nippon Paper subsidiaries will hold a combined stake of 55%.
With extensive investments in the Philippines, Vietnam, Malaysia, and Singapore, the company plans to sustain its position in Asean paper and packaging.
In 2011, the company acquired Vietnam's corrugated container producer, Alcamax Packaging, which made it third in the ranking for corrugated production capacity in Vietnam.
Machine-glazed paper, a speciality product with a high-gloss finish and basis weight of 20g-80g, is primarily used in hygienic packaging for applications in the food and medical industry.