SCG Packaging Public Company Limited announced expansion of the production capacity under its fiber packaging business in Thailand. This is part of the key efforts to strengthen leadership position while enhance the capability to deliver packaging solutions to the growing customers' and consumers' demands in the country. This investment is through Thai Containers Group Company Limited (or "TCG"), a 70:30 joint venture between SCGP and Rengo Company Limited, Japan.

TCG is ASEAN's leading fiber packaging solution provider with multiple production facilities across Thailand, Vietnam and Indonesia. The THB 2,450 million investment budget will be for machinery, installation, and working capital of the additional 75,000 tons per year capacity of high-quality corrugated carton and sheet board. Commercial start-up is expected in the middle of 2023.

The project will enable SCGP to accommodate Thailand's growing demand for corrugated carton which is in line with the continued economic recovery; especially of consumer related segments, food & beverage, FMCG, hygiene product including export demand for frozen & canned food. In addition, Foreign Direct Investment (FDI) continues to increase its presence along with BOI's policy to promote investment in high-technology manufacturing business. SCGP's Fiber packaging business focuses on capturing growth opportunities and reinforcing leadership position in Thailand and ASEAN markets.

This investment would enhance consumer-linked customer network while augment packaging solutions capabilities and integration level with upstream Packaging paper business. The brown field expansion would also enable SCGP to maximize asset utilization and elevate production efficiency with the latest available technology including robotic, automation and attractive printing application. Moreover, abovementioned project is expected to improve logistics cost competitiveness and services level of supply chains as the locations of new capacity will be in existing facilities of TCG and its subsidiaries in Samutprakarn and Samutsakorn, which are clustering with fast-growing customer segments.