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Southeast Asian Packaging Paper Production Capacity Continues To Grow In The Future

Apr 25, 2019

According to a recent report by the Philippine media, United Pulp and Paper (UPPC) of the Philippines will invest 8.5 billion Philippine pesos (about 165 million US dollars) to build a corrugated paper machine with an annual production capacity of 220,000 tons. It is planned to start production in November 2020.

The project was approved by the Philippine National Investment Agency (Board of Investments) on April 16. The project will be located in Calumpit, Bulacan, and the products are also planned to be exported to overseas markets in addition to local consumption.

UPPC was founded in 1969 and is currently a subsidiary of SCG in Thailand. According to Fastmarkets RISI data, UPPC currently has two paper machines in Calumpit, with a total capacity of about 230,000 tons per year.

The paper machine is just one of the many new corrugated paperboard projects in Southeast Asia. According to the incomplete statistics of PaperLink, China's major packaging paper companies have announced new production capacity of packaging paper and recycled pulp in Malaysia and Laos, reaching 6-7 million tons/year. However, Southeast Asian local paper companies and other countries and regions. Investors are also increasing their investment in Southeast Asian countries.

In Malaysia, GS Paperboard & Packaging (GSPP) will build a 1,445 ton/day boxboard corrugating machine, which is expected to be commissioned in 2021. Valmet will offer an OptiConcept M cardboard production line including an automation system and a winder with a width of 7.25 meters and a design speed of 1,200 m/min to produce 70-180 g/m2 boxboard corrugated paper products.

Located in Selangor, Malaysia, GSPP is a subsidiary of the Japan Prince Group and currently has a capacity of approximately 300,000 tons per year.

In Vietnam, Marubeni Corporation of Japan announced in January this year that it will build a new 350,000 tons/year boxboard corrugated paper project in Batu-Vung Tau province, Vietnam, which is expected to be put into production in the second half of 2020.

Taiwanese media reported that Taiwan paper company Zhenglong also plans to add a No. 2 paper machine to the Pingyang paper mill in Vietnam, with an annual output of 400,000 tons of cardboard, which is expected to be put into production in 2021.

In addition, according to Paper Industry News, this year, Vietnam's local paper-making enterprises have also put into production of box-and-wall corrugating machines, which will release a total of about 500,000 tons/year.

In Indonesia, a printing paper machine of a subsidiary of the local major paper company PT Fajar Surya Wisesa Tbk (hereinafter referred to as Fajar) will be transformed into corrugated paper this year, with an estimated annual production capacity of 230,000 tons.

According to Fastmarkets RISI, APP also plans to renovate three paper machines in Indonesia and switch to packaging paper. The three paper machines have a combined capacity of about 850,000 tons/year of cultural paper.