Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reports that, in its continued drive to expand, the Company has recently invested to raise production capacity of its high-quality corrugated carton and sheet board with additional 75,000 tons per year. This latest investment is intended to level up SCGP's capabilities to deliver packaging solutions to the growing demands along with the continued economic recovery. This investment would enhance our consumer-linked customer network and the synergies from integration with upstream Packaging Paper Business.
The investment is through Thai Containers Group Company Limited (TCG), a 70:30 joint venture between SCGP and Rengo Company Limited, Japan. The THB2,450 million investment budgets will go toward machinery, installation, and working capital. The commercial start-up is expected in mid-2023.
SCGP is confident that the latest investment will enable the Company to maximize its assets utilization and enhance production capabilities with the latest available technologies, including robotics, automation and printing applications.In addition, the Company would be able to improve logistics cost competitiveness and supply chain efficiency as the expanded capacities will be located in existing facilities of TCG and its subsidiaries in Samutprakarn and Samutsakorn, which are clustering with fast-growing customer segments.
SCGP has assessed the demand for corrugated carton in Thailand to be on an up-trend, driven by the increased use of packaging relating to consumer related segments, including food and beverages, frozen and processed foods for export, consumers goods, and hygiene products. In addition, Foreign Direct Investment (FDI) continues to climb and drive exports under the government's investment promotion policy as well as the economic recovery contributing to the growth of the packaging industry.
SCGP is committed to fulfilling and facilitating consumers' increasing preference through products ranging from fiber packaging, performance and polymer packaging, and other outstanding solutions. Currently, it operates over 50 facilities across Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the United Kingdom and Spain.
Source: MT Multimedia