Japan's Showa Denko inks agreement with Carabao Group for aluminium can plant

Showa Aluminium Can Corporation (SAC), a consolidated subsidiary of Showa Denko (SDK) yesterday signed a partnership agreement with Carabao Group Public Company Limited (CBG), a beverage maker in Bangkok, with an investment of 700 million bahts to manufacture and sell aluminium cans in Chachoengsao Province, Bangkok.

The establishment of the new can plant will help SDK to expand its operation mainly in Asia. So, SDK and SAC signed a deal with CBG to achieve the key target. CBG hopes for expansion of its capacity and to ensure a steady supply of aluminium cans. The company uses cans for their export products.

The aluminium can plant will have a production capacity of 1 billion cans per annum. The operations are expected to start in October 2018. Carabao owns 74 per cent, SAC 24 per cent and SDK 2 per cent of the joint venture.

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In May 2014, SAC purchased a majority of shares in Hanacans Joint Stock Company (Hanacans) in northern Vietnam. In February 2017, SAC announced that the company will open Hanacans’ second plant that will manufacture aluminium cans.