Japanese firms launch WPC factory in Vietnam

By Steve Toloken
News Editor / International

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, Film & Sheet, Injection Molding

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
News Editor / International

Published: October 29, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Plastic products win Best of IBS awards

January 30, 2015 1:36 pm ET

LAS VEGAS — A year ago, inventor Jeremy Smith of Utah took his idea for an electrical outlet cover plate with LED lights on the bottom edge to...    More

Image

LG Hausys pulls out of Russian PVC profile market

January 30, 2015 11:17 am ET

LG Hausys Ltd., the building and decorative materials offshoot of South Korean giant LG Chemical Ltd., is pulling out of PVC window profile...    More

Image

Profit dips at Bemis Co. Inc.

January 29, 2015 2:04 pm ET

Profit dipped for Bemis Co. Inc. for all of 2014, but were up during the fourth quarter in what the company's leader called a “pivotal year....    More

Image

Falcon Plastics expands in South Dakota

January 29, 2015 11:45 am ET

Falcon Plastics Inc. is putting the final touches on a 60,000 square foot addition that will nearly double the size of its Brookings, S.D.,...    More

Image

African equity fund invests in Kenya's General Plastics

January 28, 2015 4:24 pm ET

An African investment fund specializing in agriculture has invested in Kenyan packaging firm General Plastics Ltd. to provide funds to expand in the r...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events