Cheng Loong Invests $310 Million to Become Vietnam's Largest Paper Producer

Cheng Loong, Taiwan's leading paper manufacturer, announced a US$310 million (NT$9.8 billion) investment for phase three expansion at its Binh Duong paper mill in Vietnam. Completion targets first half of 2026, lifting annual packaging paper capacity from 700,000 to 1 million metric tons. This establishes Vietnam's largest low-carbon smart paper base, serving international tech/electronics firms and local manufacturing/consumer packaging needs.​

The Binh Duong mill follows a five-phase plan. Phases one-three focus packaging paper with US$670 million (NT$21 billion) total investment. Phase four targets 50,000 tons/year household paper; phase five plans 50,000 tons/year paper tubes.​

January revenue hit NT$3.685 billion, down 5.9% month-on-month but up 19.21% year-on-year. Taiwan supplied 65% of revenue, Vietnam 29.99%, with Taiwan driving main profits. On February 10, Cheng Loong secured a US$230 million syndicated loan led by Mega Bank (oversubscribed 2.17x), funding low-carbon/smart equipment, AI/digital management for efficiency and cash flow. Remaining US$80 million uses internal funds.​

General Manager Chang Ching-piao emphasized smart manufacturing, green energy, overseas growth for low-carbon shift and global layout, partnering finance for 2050 carbon neutrality. Since 2005 Vietnam entry, Cheng Loong built one mill, five packaging plants with vertical integration. Post-expansion, Vietnam packaging paper hits 1 million tons/year. It adds Binh Cat second paper product line H1 2026 and Ninh Binh sixth plant (120 million sqm/year) by H1 2027, pushing total Vietnam paper products over 900 million sqm to meet Southeast Asia electronics/manufacturing packaging surge.