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

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

Image

Bemis' product strategy paying off with record earnings per share

July 24, 2014 2:56 pm ET

Bemis Co. Inc. is feeling good about itself these days as the flexible packaging and pressure sensitive materials firm is posting record earnings per ...    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

Sealed Air moving headquarters, 1,200 jobs to Charlotte, N.C.

July 23, 2014 2:06 pm ET

Sealed Air Corp. — which is known for its Bubble Wrap brand — is moving its headquarters from Elmwood Park, N.J., to Charlotte, N.C., and ...    More

Image

Plastics industry blasted for stance in green building debate

July 22, 2014 2:45 pm ET

The plastics industry has taken high-profile stance in the debate over green building standards. The result, today at least, is that it's getting some...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

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

More Events