The investment adds an incremental 28,080 tons of tissue capacity (facial tissue, napkins, toilet tissue, mini jumbo rolls and jumbo rolls) and 179,400 tons of industrial paper capacity (medium, testliner and chipboard which are key inputs for carton-board and paper packaging products).
The diversified product focuses on these two grades which are registering strong growth rates will enable Saigon Paper to overcome substantial challenges and execution risks as they seek to improve their business prospects in 2015 and beyond.
“Typically, only paper producers with more or less 30 years of operations or corporation will be in a positon to expand production at a level of investment like Saigon Paper. With 18 years of operation, Saigon Paper is younger, but goes faster and sooner, and as thus, faces more pressure. That is why we opt for M&A and organizational restructuring. The experiences enable Saigon Paper to be well equipped with global integration, anticipate global trends and become competitive in terms of technology, machinery, market and management. Our disadvantage is higher cost of capital compared to producers in the region. They raise debt capital with the lending interest rate of 4-5%, while we incur two times higher interest rates, so the challenges are inevitable. With our product quality and competitive advantages, we are actively growing our export customer base. Nowadays, Saigon Paper’s products are Asia, Europe, and American. We are confident to conquer new markets,” said Cao Tien Vi, the Founder and CEO, Saigon Paper.
Saigon Paper Corporation is a leading manufacturer of tissue products (including tissue, toilet rolls and napkins) and industrial paper (including medium, testliner, chipboard and duplex boards) in Vietnam.
