BANGKOK -- Thai materials maker Siam Cement Group will spend 5.12 billion baht ($155 million) to increase production capacity at a packaging materials plant in the Philippines.
The investment plan was approved at a board meeting on Wednesday.
The plant in Calumpit near Manila is operated by subsidiary United Pulp and Paper and produces packaging materials such as cardboard boxes. The investment will raise the plant’s annual production capacity by 230,000 tons by 2020 at the earliest.
SCG decided to make the investment in anticipation of growth in local demand, which stood at 1 million tons in 2018 and is expected to rise by 5% annually in the coming years, according to the group.
Amid the growth of online shopping, SCG plans to boost groupwide annual packaging material output capacity to 2.8 million tons.
The company currently makes cardboard boxes and other paper packaging materials in Thailand, Vietnam and the Philippines.
In 2016, the group doubled the production capacity of base paper for cardboard manufacturing at its Vietnamese joint venture with Japan’s Rengo at a cost of roughly 15 billion yen ($132 million).