Japan’s Oji to build new corrugated container plant in Malaysia

06, Aug. 2020

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Image by Thanks for your Like • donations welcome from Pixabay

KUALA LUMPUR, NNA - Oji Holdings Corp. will invest about 4 billion yen ($38 million) to build a new corrugated container plant in Johor, Malaysia, with the aim of starting operations in January 2022, as the company pursues expansion of its overseas business.

This will be the company’s ninth corrugated container plant in Malaysia where demand for cardboard boxes is growing in the electrical and electronics industries, as well as in the general consumer goods sector.

Akio Hasebe, executive director of Oji Industrial Materials Management Co., told NNA that the company would consider building more plants and expanding existing facilities as demand for corrugated containers in increasing in a wide range of sectors in Southeast Asia, including Malaysia.

Oji Holdings has a market share of about 30 percent in the corrugated container market in Malaysia, the highest penetration in domestic markets in Southeast Asian nations, according to the executive director.

Once the new plant with a monthly output capacity of seven million square meters is up and running, it will boost Oji Holdings’ corrugated container production capacity by 15 percent. This also comes at a time when the company is boosting capacity to manufacture base paper and become less reliant on external suppliers, Hasebe said.

In 2017, Oji Holdings said it would invest 35 billion yen to introduce a new container board manufacturing machine at Malaysian subsidiary GS Paperboard & Packaging Sdn. Bhd. (GSPP) to improve self-sufficiency in base paper and meet increasing demand for products with high quality and low unit weight.

The new machine at GSPP, which Oji Holdings acquired in 2010, is scheduled to start operating in April 2021.

In Southeast Asia, Oji Holdings currently operates 20 corrugated container plants in Malaysia, Thailand, Vietnam, Cambodia and Myanmar. A new factory is also being built in Indonesia for scheduled operation by the end of this year.