ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Environment

Japan's paper bag king eager to kick out plastics in Indonesia

The Pack to build first Southeast Asian plant

Southeast Asian consumers are spending more on luxury goods, which tend to be placed in paper bags rather than plastic.   © Reuters

OSAKA -- Japan's leading manufacturer of paper bags is building a factory in Indonesia, hoping to tap growing demand as Southeast Asia moves away from plastic.

The Pack will invest 2 billion yen to 3 billion yen ($18.5 million to $27.7 million) in the plant, which it aims to bring online in December 2020.

Indonesia is debating a ban on plastic bags at stores. The company expects other Southeast Asian countries to consider a similar move and looks to export paper bags to those markets from the new plant.

Indonesian consumers also are shopping more at high-end boutiques and department stores, which tend to place products in paper bags.

The Pack makes products in China, but this will be its first facility in Southeast Asia. The Osaka-based packaging producer is expected to form a joint venture with a local partner that offers sales channels in Indonesia and elsewhere. Details of the deal will be ironed out at a later date.

The Pack earned about 30% of its group revenue from paper bags in 2018. It aims for revenue of 100 billion yen in 2020 through stronger overseas operations.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media