Showa Aluminum Can to start its third can production plant in Vietnam and expand existing lines

Showa Aluminum Can Corporation (SAC), a subsidiary of Japan’s Showa Denko has decided on starting its new aluminium can plant in Vietnam. This will be its third production base aimed at expanding its operations in Vietnam. The new plant will be located in Ba Ria-Vung Tau Province and the company is also planning to expand the can production line at its old factory in the northern part of Vietnam.

Hanacans Joint Stock Company (Hanacans) is an affiliated company of SAC in Vietnam, which has production lines for can bodies and can ends in its Bac Ninh Factory. It also produces can bodies in its Quang Nam Factory. The new can factory of SAC will have a capacity to produce 1.3 billion can bodies per year. It will also install an additional line in Hanacans' Bac Ninh Factory to produce 1.1 billion can ends every year. With these expansions Hanacans will have three factories covering northern, central and the southern part of Vietnam and together it will have capacities to produce 31 billion can bodies and 33 billion can ends every year.

The total amount of investment in the expansion is expected to be about 7 billion yen and the new facilities are scheduled to start production in July 2020.

In its strategy for the aluminium can business under its business plan "The TOP 2020", SDK aims to expand overseas and strengthen its existing operations and improve profitability of domestic operation. Showa Denko’s aluminium can sales in Vietnam have been growing well in northern and central part of the country. The Group aims to expand the scale of its aluminium can business in Vietnam further. The region’s can market is expected to grow steadily in the future and the company expects to convert the can business to an independent business. In the domestic market, the company is focusing on profitability, cost reduction, streamlined production and price stability.