Bericap GmbH, one of the leading global manufacturers of plastic and aluminum closures, has selected Long Hau Industrial Park in Long An province near Ho Chi Minh City to build its biggest plant in Southeast Asia.
Its subsidiary, Bericap Vietnam, has leased a 6,600-square-meter site in the IP to build the factory as the producer’s 27th production site worldwide, Bericap Vietnam CEO Lee Swee Heng said Monday.
“This is our biggest production site in Southeast Asia," he said at a groundbreaking ceremony at the IP, held by Vietnamese industrial developer Long Hau JSC, to start work on a 12-hectare zone of ready-built warehouses.
Heng said the new Bericap plant would initially have 24 production lines, with a long-term goal of 60, and its products would be sold in Vietnam, then in export markets later. He did not disclose the estimated investment for the facility.
The global plastic caps and closures market size was valued at $41,956 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.14% until 2027 to reach $59,998 million by that time, according to an industry report issued by 360researchreports.com this September.
Bericap GmbH was mentioned in the report as one of the players that have focused on expansion, investment, acquisitions, delivery focus, portfolio expansion, and brand development in the forecast period.
At Monday’s groundbreaking for Long Hau Company’s 12-hectare zone, marketing and sales director Bui Le Anh Hieu said that Bericap Vietnam and a Danish company, whose name he did not disclose, have registered to lease about 75% of the space of the new development in the IP, about 19 kilometers from downtown HCMC.
Hieu said his company considered the new development project a significant job this year, and that it is divided into five phases. Phase 1 will offer about 13,000 square meters of floor space for lease, with hand-over set for March 2023.
The company also said it would continue to expand its industrial land bank in the country, including An Dinh Industrial Park on 200 hectares in the Mekong province of Vinh Long, and a further 90-hectare expansion of Long Hau IP.
In addition, the first-phase expansion of the Long Hau high-tech factory in Danang Hi-tech Park in Danang city, central Vietnam’s hub, will finish later this year.