Showa Denko boosts aluminum can output by 72% in Vietnam
TOKYO, NNA - Japanese industrial material maker Showa Denko K.K. is aggressively boosting aluminum can output in Vietnam amid growing local demand for beverage containers.
The company said Thursday it will build a third plant near Ho Chi Minh City for the launch of operations in July 2020, expanding its production capacity in the Southeast Asian country by 72 percent to 3.1 billion cans per year.
It will mainly produce the product for beer and soft drinks, according to Showa Denko spokesman Junji Kodama.
Hanacans Joint Stock Co., a local affiliate of wholly owned subsidiary Showa Aluminum Can Corp., has two factories in Vietnam, one in the northern province of Bac Ninh and the other in the central province of Quang Nam, with a combined annual output capacity of 1.8 billion cans, according to its statement.
With the planned third factory in the southern province of Ba Ria Vung Tau, more than 100 kilometers from Ho Chi Minh City, the Tokyo-based group can cover Vietnam's major areas.
Domestic demand for cans is estimated to have topped 10 billion in 2018, the spokesman told NNA, adding it is expected to grow 10 percent annually.
For its aluminum can business, Showa Denko aims to strengthen overseas bases and improve the profitability of domestic operations under its medium-term management plan to 2021. (NNA/Kyodo)