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.