Tokyo, Japan 20 June 2012 -- Nippon Paper Industries Co., Ltd. and NP Trading Co. have concluded a joint venture agreement with SCG Paper Public Company Limited in accordance with the following for the production and sale of machine glazed paper in Thailand.
Nippon Paper Group, Inc.and SCG Paper have investigated ways in which they could collaborate to develop their business. The companies have now agreed to establish in Thailand a joint venture company with a 55% equity investment from Nippon Paper Group in the industrial paper sector, displaying their strengths in growing market.
The joint venture company plans to install a new paper machine which features annual production capacity of 43,000 tons on the existing SCG Paper production site. The start-up is scheduled for the first quarter of 2014.
Economic growth in the emerging markets of Asia has brought more demand for high-end industrial paper. SCG’s existing infrastructure and utilities and Nippon Paper Group’s technological and sales capabilities can be utilized to sell to Southeast Asia and neighboring countries industrial paper that is cost-competitive and has a quality advantage.
Nippon Paper Group also takes this opportunity to explore further business development in Southeast Asia.