NPI Develops Paper Cup Business and Healthcare Business in Vietnam
Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro;
hereinafter, "NPI") aims for sustainable growth in the future with its
fifth medium-term business plan (from FY2015 to FY2017) by actively
injecting management resources into areas that are expected to grow from
now on and proceeding with the shift in the business structure. For
oversea businesses, NPI puts a lot of energy into business development
in the ASEAN region where economic growth is continuing. In December
2015, NPI opened its Vietnam office and launched a paper cup business
and healthcare business.
1. Launch of paper cup business
In Vietnam, economic growth is boosting individual consumption and
amid the increasing public awareness of the importance of sanitation
along with the growth of the food service industry, the market in the
area of paper container processing products, especially beverage cups,
is expected to continue to expand from now on. In response to this
situation, in January 2016, NPI established Nippon Paper Viet Hoa My
Joint Stock Company (hereinafter "NPVHM") by joint capital with the
owners of Viet Hoa My Trading Production Company Ltd., which has the top
domestic share in the paper cup business. After its establishment,
NPVHM embarked on building a new plant in the suburbs of Ho Chi Minh
City. The construction was completed on January 13 of this year and the
plant entered full-scale operations.
■Overview of Nippon Paper Viet Hoa My Joint Stock Company
| （１）Location | Ho Chi Minh City, Vietnam |
|---|---|
| （２）Paid-in capital |
30 billion Vietnamese dong (about 200 million yen) |
| （３）Equity ratio | 65% for NPI and 35% for local partners |
|
（４）Net sales |
About 200 million yen |
| （５）Area of business | Manufacturing and sales of paper cup (beverage cups, etc.) |
2. Entry into the growing disposable diaper market
In
the ASEAN region, the market for disposable diapers for infants is
rapidly expanding along with the increase in income standards. At the
same time, the market for disposable diapers for adults is also expected
to further expand along with the rapid population aging. In March 2016,
NPI acquired Ky Vy Corporation (hereinafter "KyVy"), which manufactures
and sells disposable diapers for adults and infants in Vietnam, and
made market inroads into the healthcare market in that country. NPI will
not only tap the domestic market through KyVy's sales channels by
utilizing the technological expertise and know-how that it has developed
through its domestic businesses but also actively carry out business
with a focus on the entire Asian region.
■Overview of Ky Vy Corporation
| （１）Location | Ho Chi Minh City, Vietnam |
|---|---|
| （２）Paid-in capital |
104 billion Vietnamese dong (about 500 million yen) |
| （３）Equity ratio | approx. 98% for NPI and 2% for directors of the company |
|
（４）Net sales |
About one billion yen |
| （５）Area of business | Manufacturing and sales of disposable diapers for adults and infants, etc. |
