SCC Aims for Enormous Growth in 2020, Spending ฿5bln. to Expand Business in Philippines
SCC has invested ฿5.1 billion to expand packaging paper operation in the Philippines, seeing high income in 4Q20.
The Siam Cement Public Company Limited (SCC) has decided to expand its packaging paper operations in the Philippines, and reaffirm its commitment to expanding within the region.
The investment of approximately ฿5,115 million includes the various related machinery, civil work, financial cost and working capital, and is expected to begin operations in the fourth quarter of 2020.
United Pulp and Paper Co., Inc. (UPPC), which is a packaging subsidiary of SCC, whereby SCC indirectly holds a 98.75% stake, will add an additional packaging paper capacity of approximately 230,000 tons per annum to its existing operations that is located in Calumpit, Bulacan, the Philippines.
This investment will double UPPC’s existing capacity and contribute to SCC’s total packaging paper capacity of 2.8 million tons per annum across Thailand, Vietnam and Philippines.
The capacity expansion is to tap Philippines’ continuous growth in demand of packaging paper, which is currently a net-import market, and will benefit from the abundant supply of domestic raw materials.
Philippines’ 2018 demand is estimated at one million tons, and is forecasted to expand by approximately 5% per annum due to improved demand condition and Philippines’ high economic growth.