SCGP Expands Fiber Packaging Business in Vietnam to Address Rising Demand

SCG Packaging Public Company Limited (SCGP) has announced plans to expand its fiber packaging business in southern Vietnam through a new box plant investment aimed at meeting rising regional demand for packaging products.

The company informed the Stock Exchange of Thailand that the investment aligns with its strategy to strengthen its consumer packaging business across ASEAN markets, particularly in Vietnam, where economic growth and continued foreign direct investment are supporting increased demand for packaging solutions.

The project will be carried out through Vina Kraft Paper Co., Ltd. (VKPC), a joint venture owned 70% by SCGP subsidiary Siam Kraft Industry Co., Ltd. and 30% by Japan’s Rengo Company Limited. The investment totals VND 604 billion, or approximately THB 748 million, and will be located at VKPC’s existing packaging paper facility in Ho Chi Minh City.

According to the company, the first phase of the expansion will add 26,800 tonnes per year of corrugated container production capacity to SCGP’s existing fiber packaging operations. The facility will incorporate automated production technology intended to improve efficiency and operational reliability. Commercial operations are expected to begin in September 2027.

SCGP stated that the investment is designed to support fiber packaging demand growth in Vietnam, which the company estimates at around 7% annually. The expansion is also expected to improve integration with its packaging paper business and enhance supply chain efficiency through optimized logistics, inventory management and operating costs.