A new joint venture company named Siam Nippon Industrial Paper Company has been formed. The JV is to produce 42,000 tpy of machine glazed paper which will enter the market in 2014, according to plans published by the two partners, Nippon Paper Group and SCG Paper.
Paper manufacturer SCG Paper Public Company (SCG) and two subsidiaries of Japanese Nippon Paper Group have formed a joint venture in June. The new company named Siam Nippon Industrial Paper Company Limited is to produce machine glazed paper for several sectors including the packaging sector at its site in Thailand.
The two companies reported that THB2.2bn (€55.6m) are to be invested in the plant which is located in the Ban Pong district of Ratchaburi province and will produce machine glazed paper with a capacity of 43,000 tpy. Production is expected to be commenced in mid-2014, they added.
Through its subsidiaries Nippon Paper Industries Company and Nippon Paper Trading Company, Nippon Paper owns 5 and 50 %, respectively, of the shares in the joint venture company while SCG, a subsidiary of Thai Siam Cement Group, has a 45 % stake. The two partners formed an alliance in 2008, intending to concentrate their forces in South-East Asia.
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