Showa Aluminum Can Corporation (SAC), a subsidiary of Showa Denko Tokyo, will establish its second can production facility in Vietnam in order to expand its business in the country. This new facility would be located in Quang Nam Province of Vietnam.
In May 2014, SAC acquired majority of shares in Hanacans, a manufacturer of aluminium beverage cans in Vietnam and made Hanacans its consolidated subsidiary. The acquisition has helped Hanacans boost its sales of beverage cans around Vietnam, mostly in the northern part of the country. SAC has been looking at expanding the production capacity of Hanacans because the operating performance of Hanacans' production lines has been steadily high since 2016.
A number of Vietnamese and foreign beverage manufacturers have already decided to establish, or already established, their factories in Quang Nam Province of Vietnam as the province is backed by Vietnamese government’s policies to enhance industrial infrastructure and attract businesses. SAC has decided to establish a new production base in that Province expecting rapid expansion of the aluminium cans market in Vietnam in future and also because Hanacans had already started to ship its products to the central part of Vietnam.
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SAC will install a can line with a production capacity of 700 million aluminium can bodies a year in the new production base. Simultaneously, SAC will commission an additional line to produce can ends in Hanacans' existing factory in the suburbs of Hanoi. Once these new lines are commissioned, the company’s production capacity for can bodies and can ends will increase to 2 billion cans a year by October 2018. The total investment for the expansion project is expected to be 5 billion yen.
SAC’s leading-edge production technologies and quality control system has been strengthening Hanacans' existing customer base and cultivating new customers since its acquisition focusing more on beverage manufacturers with international affiliations. SAC’s new expansion plan is aimed at offering the best quality products in the region within the shortest delivery time through Hanacans' aluminium can factory.
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