SCGP Expands Paper Packaging Capacity in Southeast Asia

As manufacturing and export activity continues to develop across Southeast Asia, paper packaging companies are expanding their local production capacity to meet changing market demand. In September 2026, SCGP announced investments in Vietnam and Thailand that will add more than 50,000 tons of annual capacity and further strengthen its fiber packaging network across the region.

On September 3, SCGP announced an investment of approximately THB 748 million in its Vina Kraft Paper Co., Ltd. (VKPC) facility in Ho Chi Minh City, Vietnam. The project will add 26,800 tons of annual capacity for high-quality corrugated packaging and introduce automation technologies to improve production efficiency. SCGP expects demand for paper packaging in Vietnam to grow by approximately 7% annually, with the new capacity scheduled to begin commercial operations in September 2027.

Vietnam has continued to attract manufacturing investment in recent years, supporting demand for corrugated boxes and other packaging materials used in export-oriented industries. For packaging manufacturers, establishing production capacity close to major manufacturing centers can shorten supply routes and improve their ability to respond to customer requirements. SCGP's investment will further strengthen its local production and service network in Vietnam.

SCGP is also expanding its packaging capacity in Thailand through an acquisition. On September 17, the company announced that it had completed the acquisition of a 90% stake in Jin Zhong Fa Paper Industrial Co., Ltd. (JZF), a fiber packaging manufacturer located in Chonburi province. JZF mainly produces corrugated containers and serves the fruit export market, including businesses involved in exports to China. The transaction is valued at approximately THB 68 million and will add 28,000 tons of annual capacity to SCGP's network.

Located close to customers and manufacturing activity in Eastern Thailand, the JZF facility is expected to help SCGP improve production and logistics efficiency while expanding its ability to serve the local market. SCGP expects to begin consolidating JZF's financial results from October 2026 and sees the facility as a potential base for further regional development.

Together, the two investments will add more than 50,000 tons of annual capacity in Vietnam and Thailand. More broadly, they highlight the continued development of Southeast Asia's paper packaging supply network. As manufacturing, exports, and regional consumption continue to develop, packaging companies are looking to place production capacity closer to customers to improve supply flexibility and reduce logistics pressure.

For paper and packaging buyers, additional regional capacity may create more diversified sourcing options. However, increased production capacity does not necessarily mean that supplies of every paper grade will immediately increase. Market conditions will continue to depend on downstream demand, raw material costs, mill operating rates, and the balance between local production and imports.

SCGP's latest investments in Vietnam and Thailand show that Southeast Asia remains an important market for paper packaging companies. As regional manufacturing and supply chains continue to develop, more packaging capacity may move closer to major production and consumption centers, making Southeast Asia a market worth watching in the global paper packaging industry.