VIETNAM (News release) -- Rengo announces that Vina Kraft Paper, its joint venture in Vietnam, has decided to construct a new production base for containerboard.

The total annual demand for containerboard in Vietnam is approximately 3 million tons, and it is expected to grow at an annual rate of 6-7% due to continuing foreign direct investment, mainly in the export industry, and rising domestic consumption.

The total investments in new containerboard mill are VND 8.133 trillion (approximately JPY 37 billion), the estimated production capacity is 370,000 tons per annum. With the newly constructed mill, Vina Kraft Paper will firmly establish its position as a market leader in the Vietnam containerboard market, and aims for sustainable development and growth. Furthermore, it will also strengthen Vietnam's domestic integrated production system of containerboard to corrugated box.