SCGP increases investment in Visy Packaging due to demand rise Boosting capacity by 347 million pieces, to be completed year-end

Tuesday 30 March 2021 15:36
SCGP is expanding Visy Packaging's production capacity of high Performance and Polymer Packaging by 15-20% or more than 347 million pieces a year in response to increasing demands in Thailand and abroad. Full operation is expected later this year.
SCGP increases investment in Visy Packaging due to demand rise Boosting capacity by 347 million pieces, to be completed year-end

Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reveals that the Company is in the process of ratcheting up production capacity of Performance and Polymer Packaging (PPP) of Visy Packaging (Thailand) Limited or Visy to meet increasing demands for packaging in Thailand and abroad.

Anticipating that increasing demands will spur future growth, the Company is investing Baht 510 million , a new production line #7 including related automatic warehouse is currently under construction. Visy's capacity will increase by 347 million pieces or 15-20%, depending upon the product mix at any given period. Currently the machine has commercially started up while the new automated warehouse is expected to complete at the end of 2021.

Visy is 80% owned by SCGP Rigid Plastics Co., Ltd., which is a 100%-owned subsidiary of SCGP. The acquisition of Visy shares was completed in August 2019 as a Merger and Partnership (M&P) subsidiary, which has continued to operate at full capacity since.

Visy Thailand is Asia's leading producer of thermoformed barrier food packaging and related technology such as high-quality fruit cups, pet food and human food trays, jars, etc. by serving established global brand owners that require high quality packaging for food preservation, light weight, shelf-life extension, and recyclable. Majority of its sales revenue in 2020 were direct and indirect exports to developed markets, for example the United States and European markets. Since the consolidation, Visy Thailand has been operating at its full capacity producing 1,750 million pieces a year, supported by consumers trends such as higher middle-class income, smaller households, and convenience and healthier lifestyle. Its products can also be used as an alternative packaging for aluminum, tin cans and glass jar.

Furthermore, Visy's products have been used as replacements for other packaging products and thus become viable alternative packaging products for consumers, leading to increased uses.

Source: MT Multimedia