MOSCOW (MRC) -- Siam Cement Group (SCG) will invest on a USD22.7m project to produce biaxially oriented polyethylene terephthalate (BOPET) in Vietnam, said the company.
AJ Plast (Vietnam) Co Ltd, a 45:55 joint venture between SCG subsidiary SCG Chemicals and Thailand-listed flexible packaging producer AJ Plast, will carry out the project, SCG said in a bourse filing on 22 August.
The BOPET project is expected to start commercial production in the first half of 2024, SCG said in a statement. The two companies have an ongoing Thai baht (Bt) 700m (USD19m) biaxially oriented polypropylene film (BOPP) project in Vietnam slated for commercialisation in the first half of 2023.
“The BOPP and BOPET projects reaffirm SCGC ongoing strategic investment and commitment in Vietnam, particularly value-added product designed to meet the growing consumer demand by providing raw material to serve the flexible packaging sector,” SCG said.
The Thai conglomerate is in the process of completing Vietnam’s first petrochemical complex in the southeastern Ba Ria-Vung Tao province. Called Long Son Petrochemical complex, the USD5.4bn project is now 96% complete, with full start-up expected by the second quarter of next year.
We remind, SCG Packaging has entered the packaging materials recycling business in the Netherlands, via the 100% acquisition of Peute Recycling BV for EUR78.2m. The purchase was done through SCGP Solutions (Singapore) Pte Ltd, a wholly owned subsidiary of SCGP, the Thai firm said in a statement on 18 July. Based in Dordrecht, Peute is the largest independent packaging materials recycling and trading company of paper and plastic in the Netherlands, SCG Packaging said.