Sojitz : Pla-Net Joins Packaging Material Manufacturing Business in Vietnam
January 15, 2018 at 09:34 pm
Share
Sojitz Pla-Net Corporation ('Sojitz Pla-Net') announced they will enter the packaging material manufacturing business in Vietnam through equity participation in Rang Dong Long An Plastic Joint Stock Company ('RLP'), a subsidiary of major Vietnamese plastics manufacturer Rang Dong Plastic Joint Stock Company ('RDP').
RLP will use the investment received from Sojitz Pla-Net to construct a new plant in southern Vietnam's Long An Province. The plant will produce a wide variety of products, including packaging products using various printing, laminating and bag making machine ; synthetic leather; and other processed products . Total investment for the plant reaches approximately JPY 3.6 billion, with operations anticipated to commence in March 2018.
The retail industry in Vietnam has continued to develop, growing to include supermarkets and convenience stores in recent years. This has led the country's market for food product packaging to grow by 10%-15% annually. In the future, experts predict Vietnam will see continued advancement in cold chain logistics, greater economic growth, and an increase in packaging materials (starting with plastic bags and other daily-use items) produced with greater added value, such as ability to block out moisture and gas. RLP is poised to capture this new demand, targeting JPY 10 billion in sales within the next five years.
Sojitz Pla-Net concluded an agreement for a strategic alliance with RDP in March 2016, with the company having supplied RDP with plastic resins and handled sales of RPD's products. Sojitz Pla-Net have also accumulated a wide variety of packaging materials expertise, having operated businesses manufacturing advanced plastic films in Europe and North America for many years. Through their investment in RLP, Sojitz Pla-Net will now not only acquire manufacturing functions in Vietnam and capture demand in the country, but also develop new markets in neighboring ASEAN countries like Myanmar, Cambodia, and the Philippines. Sojitz Pla-Net aims to further expand the business going forward, using this equity participation as a foothold to capture packaging material markets all across the growing countries of Asia.
Related Information:
Company Overview - Rang Dong Plastic Joint Stock Company (listed on Ho Chi Minh City Stock Exchange)
Established
1960
Head Office
Ho Chi Minh City, Vietnam
Representative Director
Ho Duc Lam
Shareholders
Ho Duc Lam - 64.15%, Others - 35.85%
Main Business
Manufacturing packaging materials, pleather, and other plastic products
Company Overview - Rang Dong Long An Plastic Joint Stock Company (RLP)
Manufacturing packaging materials, pleather, and other plastic products
Sojitz Corporation published this content on 16 January 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 January 2018 02:34:04 UTC.
Original documenthttps://www.sojitz.com/en/news/2018/01/20180116.php
Public permalinkhttp://www.publicnow.com/view/F7D5F21EFE327E9297CDB78972C90966A4517055
Sojitz Corporation is a diversified group organized around 10 business segments:
- distribution of chemicals products (25.4% of sales): organic, basic and specialty chemicals, plastic products, resins, etc;
- mining operations (22.2%): coal mining, alumina refining, sale of steel products and ferrous and non-ferrous metals, etc;
- distribution of large consumer products (17.6%): clothing and accessories, textile products, home and decorative articles, etc;
- automobile assembly and sales (11.6%);
- production and sale of food products and ingredients (7.8%);
- sale of industrial machinery and equipment and development of health facilities (6.9%);
- development and operation of energy and telecommunications infrastructure (3.6%);
- industrial infrastructure operation, property management and urban development (2%);
- aircraft and ship sales (1.7%). The group also develops activities in the operation of airport and rail infrastructure;
- other (1.2%): provision of financial services, logistics services, consulting, etc.