Japan's Sojitz purchased Saigon Paper for $91 million

By Minh An - Jun 27, 2018 | 07:21 AM GMT+7

TheLEADERThe Vietnam’s largest paper manufacturer of tissue paper and industrial paper Saigon Paper's business registration information reveals that the Japan's Sojitz Corporation has acquired more than 90 per cent of this company's shares, which took Sojitz roughly $91 million.

Established in 1997, from a small-scale manufacturing base, Saigon Paper has rapidly grown into the Vietnam’s largest paper manufacturer of tissue paper and industrial paper.

This company supplies tissue paper through two leading brands, including Bless You for high-end segment and SaiGon for popular segment. It also has industrial paper products for carton packaging.

After investing in new plants in 2013, Saigon Paper has modern production lines with total capacity of 273,000 tons per year. It is estimated that Saigon Paper accounts for 18 per cent of total market share.

In 2016, the company achieved revenue of roughly $105 million, increased 20 per cent compared to that of 2015. Saigon Paper's leaders expect higher growth rates in the coming years thanks to fast-growing demand for tissue paper and cardboard in Vietnam.

Sojitz Corporation was one of the first Japanese companies to invest in Vietnam since 1986.

Sojitz's investment mainly focuses on electricity, petroleum, fertilizers, industrial park infrastructure, flour distribution and agriculture with high quality rice.

In the field of paper production, Sojitz cooperated with Indian partner in plan of building a $154 million-pulp mill in Dung Quat, Quang Ngai province since 2013. However, until 2015 that the project was proposed to build in Quang Ninh province with a capacity of 150,000 tons of pulp per year.

The acquisition of Saigon Paper helps Sojitz quickly enter the paper production market of Vietnam, in which cardboard sector posted rapid growth and meet China's rising import demand following changes in Beijing’s environmental protection policy.