Japan’s Showa Aluminum Can Corp. has completed the construction of its third Vietnamese plant near Ho Chi Minh City, aiming to make further inroads in the domestic beverage container market.
The company began production at the factory in Ba Ria-Vung Tau Province in southern Vietnam on Wednesday, its parent company Showa Denko K.K. said in a statement released Thursday.
The plant, with an annual output capacity of 1.3 billion cans, produces 330-milliliter beer cans to supply to local breweries, a spokeswoman in Tokyo. Hanacans Joint Stock Co., a local affiliate of Showa Aluminum Can, operates the factory.
The new plant, situated in a 74,200-square-meter lot in the My Xuan B1 Tien Hung Industrial Zone, is staffed by about 130 workers, the statement said.
Besides the new factory, Hanacans has one plant in Bac Ninh Province, northern Vietnam, and the other in Quang Nam Province in the central part of the country.
Additional production lines capable of producing 1.1 billion can lids a year are also being installed at the plant in Bac Ninh. The work is scheduled for completion in November.
The company has invested approximately 7 billion yen ($67 million) in the construction of the Ba Ria-Vung Tau factory and the installation of new production lines at the Bac Ninh plant.
The facility completion will raise the three Hanacans plants’ production capacity to 3.1 billion cans and 3.3 billion can lids a year, according to the statement.
Tokyo-based Showa Aluminum Can made Hanacans a subsidiary in May 2014 and transferred its production technology and quality control system to the local affiliate.
Hanacans has since expanded its sales mainly in the northern and central parts of Vietnam. With the completion of its third factory, it is striving to enter the southern Vietnamese market, the statement said.