Sojitz Japan has officially acquired Saigon Paper JSC (Saigon Paper) for 10 billion yen ($ 91.2 million), a deal aimed at tapping the growing demand for cardboard and paper towels. in Southeast Asia, the Nikkei newspaper reported.
Sojitz acquired more than 90% of Vietnam’s largest tissue manufacturer from its founding shareholders. Saigon Paper, founded in 1997, is a tissue paper company under the Bless You brand, and manufactures toilet paper and cardboard.
The company’s annual turnover is up to USD 100 million, the production capacity of 40,000 tons of consumer paper and 230,000 tons of industrial paper.
The demand for cardboard boards in Vietnam has increased by more than 10 times in just over a decade due to the increasing online shopping power. Not only that, the demand for toilet paper also doubled in the same period when the lives of people in Vietnam improved rapidly.
Established in 1997 from a small-scale manufacturing facility, Saigon Paper has quickly grown into the largest consumer and industrial paper manufacturing company in Vietnam.
The company is supplying consumer paper products through two leading brands, Bless You (in the high-end segment) and SaiGon Paper (in the popular segment). In addition, this enterprise also has industrial paper products to serve the needs of carton packaging.
Saigon Paper owns two factories with a production capacity of more than 40,000 tons of consumer paper per year and more than 200,000 tons of industrial paper per year. Saigon Paper currently holds 24% market share of consumer paper and is among the top 5 largest industrial paper manufacturing companies in Vietnam. The company’s annual turnover amounts to 100 million USD.
By acquiring a controlling stake in Saigon Paper, Sojitz Group will bring six senior managers from Japan to assist to help improve the company’s management and accounting system.
Both will also focus more on improving the technology as well as the working environment of the company. In addition, Sojitz and Saigon Paper will work together to recycle waste paper from industrial parks, logistics facilities and Ministop convenience stores.
* Source: Investment bridge