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Japan's Showa Denko partnering on Thai aluminum can plant

Thursday, Mar 30, 2017

Japanese chemical maker Showa Denko will produce aluminum cans together with Thai energy drink brewer Carabao Group, fulfilling the former's wish for a promising Asian business and the latter's for lightweight cans to export its drinks in cheaply.

Showa's aluminum can unit will own 26% of a joint venture, and Carabao 74%, with the partners investing a total of roughly 2.2 billion baht ($63.9 million). They will build a plant that can churn out 1 billion cans per year in Chachoengsao Province, near Bangkok, aiming to start operations in 2018.

Thailand will be Showa Denko's second overseas production base for aluminum cans. The company bought a Vietnamese aluminum can maker in 2014, and announced in February that it would open another can plant as its second hub in that country.

Carabao aims to boost exports to such countries as China and Cambodia of its flagship Carabao Dang energy drinks, which it sells in bottles at home but in cans abroad. Until now, it procured those cans from domestic peers, but it is switching to in-house production with the help of Showa Denko's technology.

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