Japanese firms launch WPC factory in Vietnam

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: October 29, 2012 6:00 am ET

Takahiro Matsumura, sales director of Koei Vietnam Co. Ltd. (Plastics News photo by Steve Toloken)

Related to this story

Topics Construction, Injection Molding, Film & Sheet

HO CHI MINH CITY, VIETNAM (Oct. 29, 1:10 p.m. ET) — Two Japanese firms are launching a Vietnamese factory to make wood-plastic composite building products and plastic pallets, hoping to use it as a low-cost export base for Japan and Southeast Asia.

The two companies, Koei Vietnam Co. Ltd. and Toda Industries Corp., are investing a total of $2.4 million in the factory, which will start operations later this year with one 3,000 ton JSW injection press and several extrusion lines for manufacturing finished products and raw materials, said Takahiro Matsumura, sales director of Koei Vietnam Co. Ltd.

“We already have a WPC order from a Japanese company and will export to Japan for that company,” said Matsumura, speaking in an interview at the VietnamPlas show, held Oct. 24-27 in Ho Chi Minh City.

The 4,500-square-meter factory in Binh Duong province, near Ho Chi Minh City, will start with 30 employees.

The company hopes to export both the WPC products, including decking and fencing, and its pallets to other Southeast Asian countries. It has orders from Japanese firms in Vietnam for the pallets as well.

Koei Vietnam, which is a wholly-owned subsidiary of Tokyo-based plastics material and equipment trading house Koei Industrial Co. Ltd., owns 51 percent of the joint venture. Toda, an investment company, owns the remaining 49 percent.

The companies chose Vietnam both for its low labor costs and because there’s a solid base of Japanese companies already operating there, Matsumura said.

They also noticed that Vietnamese companies were coming to Japan to buy used equipment, and that got them started thinking about the market, he said.

All of the plastics equipment in the new factory is second-hand machinery bought from Japanese firms and shipped to Vietnam, he said.

The country is not a major local market for WPC products but the company hopes to develop that business.

“WPC has not been used very widely in Vietnam but in the future we should focus on the Vietnam market,” said Matsumura.


Comments

Japanese firms launch WPC factory in Vietnam

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: October 29, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Enor expanding in S.C., moving toy production to U.S. from China

August 20, 2014 4:01 pm ET

Wal-Mart Stores Inc. has convinced toy producer Enor Corp. to expand U.S. production at the expense of sourcing from China.    More

Image

Venture Plastics adds 720-ton press

August 20, 2014 2:03 pm ET

Venture Plastics Inc. expanded its El Paso, Texas, custom molding facility in early summer to grow sales.    More

Image

Ohio molder sold to private equity firm

August 19, 2014 5:23 pm ET

Private equity firm TVV Capital of Nashville has acquired injection molder Design Molded Plastics Inc. for an undisclosed price.    More

Image

Pactiv selling building products unit to Ireland's Kingspan

August 19, 2014 3:54 pm ET

Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for...    More

Image

Flexible film waste-to-oil pilot project continuing in California

August 19, 2014 3:19 pm ET

A recent decision to discontinue operations at a plastics waste-to-oil site in Portland, Ore., is not impacting a pilot program aimed at hard-to-recyc...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events