Oji builds new corrugated packaging plant in Malaysia

Oji will have 26 corrugated packaging plants <br> in South East Asia and India
Oji's plant locations in Southeast Asia and India
Photo courtesy of Oji Holdings
06 Aug 2020 − 

Oji is on a strong growth course and has announced new project in Malaysia. A 7 million m²/month plant for corrugated packaging is to be built in the country.

Japanese company Oji Holdings is proceeding with its expansion in Southeast Asia and is now planning to build a corrugated packaging plant in the state of Johor in southern Malaysia. According to the company, the new site will cover an area of 42,000 m² and have a capacity of 7 million m² per month. The plant, which will be operated by Oji's subsidiary United Kotak Berhad, will cost around JPY4bn (€32m). Production is scheduled to start in January 2022.

Furthermore, Oji is already planning to build another corrugated packaging plant in the south of the country. The company has not yet announced any details on the project.

Oji is currently on a strong growth course. In addition to a new corrugated packaging plant that is being built in Japan, the company has also implemented several projects in South-East Asia in the last twelve months. New corrugated packaging plants have started up in Vietnam and Cambodia and one is currently under construction in Indonesia. In addition, Oji says that capacities in two packaging plants in Malaysia were doubled last year. Oji already operates eight plants for corrugated packaging and two corrugated case material mills in the country.

New capacities for recovered paper-based products are being closely monitored by recovered paper merchants in Europe, among others. Since China has drastically reduced its recovered paper imports and as its imports of solid wastes are expected to end completely at the end of the year, recovered paper suppliers are always looking for alternative markets and are switching to other Asian countries. Indonesia has become a preferred destination, but Malaysia is also receiving volumes, although not as much yet. Italy, for example, which is one of the largest recovered paper exporters in Europe with an export volume of 1.8 million t last year, sold around 18,000 t of recovered paper to Malaysia in 2019.

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