Nippon Paper Group and SCG Paper Form Joint Venture in Thailand
June 19, 2012 - Nippon Paper Group and SCG Paper have agreed to form a joint venture in Thailand to produce machine glazed paper.
Nippon Paper Group will hold a 55% equity stake in the new company.
According to Nippon Paper, the joint venture company, Siam Nippon Industrial Paper Co., Ltd., plans to install a new paper machine with an annual production capacity of 43,000 tons on the existing SCG Paper production site.
Total investment of the joint venture is 2,200 million THB (approx. 5.5 billion yen)
Start-up of the new machine is scheduled for the first quarter of 2014.
In a statement, Nippon Paper said, "Economic growth in the emerging markets of Asia has brought more demand for high-end industrial paper. SCG’s existing infrastructure and utilities and Nippon Paper Group’s technological and sales capabilities can be utilized to sell to Southeast Asia and neighboring countries industrial paper that is cost-competitive and has a quality advantage.
SOURCE: Nippon Paper