Sumitomo Forestry Co. Ltd. announces that its wholly-owned subsidiary Sumitomo Forestry Singapore, Ltd. has signed a capital and business alliance agreement with An Cuong Wood-Working (“An Cuong”) of the Socialist Republic of Vietnam.
An Cuong is Vietnam’s largest interior building material manufacturing and distribution company. It produces, sells and constructs all types of fabricated and interior building materials based on wooden board.
Sumitomo Forestry established Vina Eco Board Co., Ltd., which manufactures and sells particle board in 2012. From the beginning, it manufactured the particle board core material used by An Cuong in furniture, building materials and other products. Then, in 2015, it launched a real estate development business in District 7 of Ho Chi Minh City together with major local developer Phu My Hung Development Corp.
This capital and business alliance will enable the company to fully leverage An Cuong’s sales and construction functions and establish a consolidated system in Vietnam from materials procurement through to housing construction. In addition, this alliance will accelerate the development of technology and the introduction of new products that meet Vietnam’s needs and will contribute to the advancement of Vietnam’s housing environment and culture.
Recent increases in income experienced in Vietnam (per capita income increased to $2,171 as of 2015) have provided greater motivation for the young generation to purchase houses. In urban areas in particular, the number of households is increasing due to the greater number of nuclear families, and housing demand is expected to remain high. With this, demand for wooden interior building materials is expected to grow, and consequently Sumitomo Forestry will secure new demand together with An Cuong.
Sumitomo Forestry will continue to accumulate expertise in the housing-related business overseas and promote the expansion and development of business.
