Jun 12, 2012. /Lesprom Network/. Siam Cement Group (SCG) has forged a joint venture with Japan's Nippon Paper Industries (NPI) to set up Siam Nippon Industrial Paper Co (SNP) to offer value-added products, as Bangkok Post reported. SCG subsidiary SCG Paper's deal with NPI and NP Trading, both subsidiaries of Nippon Paper Group (NPG), is for a new machine-glazed paper project worth an estimated 2.2 billion baht ($70 million). SCG Paper will hold a 45% stake in the joint venture, while SNP and two units of Nippon Paper will hold a combined 55%, said Chaovalit Ekabut, SCG's CFO and vice-president for finance and investment. The paper plant will be located in Ratchaburi's Ban Pong district and have annual capacity of 43,000 tonnes, with operations likely by mid-2014. Machine-glazed paper is a specialty product with a high-gloss finish and unique basis weight (20-80 grammes). It is used primarily in hygienic packaging with applications in the food and medical industry. SCG Paper is a core SCG business, with operations across Asean and products comprising of pulp, printing and writing paper, packaging paper and corrugated cartons. Nippon Paper Group is a leading paper producer in Japan. Its main businesses cover a wide range of paper operations, as well as trading activities globally.