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Carabao Group teams up with Japan’s Showa with 2-billion Baht joint venture in aluminum can manufacturing to accommodate market expansion and become one of the leading vertically integrated beverage producers

02-05-2017

Carabao Group (CBG) teams up with SHOWA DENKO Group, Japan’s leader in aluminum can manufacturing, to establish a joint venture of 2 billion Baht investment to pave way for overseas expansion in the future and become more vertically integrated business in upstream industry to cut cost and increase long-term profitability.

Carabao Group, recently establishes a 2-billion Baht joint venture with business partner, SHOWA DENKO Group from Japan, to operate aluminum can production. The new venture is expected to yield 1,000 million cans per year to reduce its reliance on outsourced supplier and supply high-quality cans to accommodate the expansion of canned energy drink business under Carabao trademark in overseas market.

Mr. Sathien Setthasit, CEO of Carabao Group or CBG, reveals that the group has co-invested with SHOWA DENKO Group in Japan to manufacture aluminum cans. This is also to accommodate future growth in demands and expand into an upstream business activity, which is in line with our vertically integrated business of manufacturing, selling, and distributing energy drinks under the group’s trademark. The new plant is expected to fully operate in the fourth sector of the year.

“Our joint venture with SHOWA DENKO Group, which is among the biggest top five aluminum product manufacturers with three technical support centers in Japan, is a crucial step to strengthen the group, allowing us to expand and continue our businesses in the vertically integrated business. To achieve our goal to be number one, owning our own aluminum can manufacturing factory allows us to expand the business, cut cost and increase profits in the long run. The excess of production capacity can also be sold to other companies and further increase our income.” Mr. Sathien says.

SHOWA DENKO Group is a Japanese firm with its securities listed on the Tokyo Stock Exchange. Its individualized businesses include petrochemical industry, chemical products, aluminum, electronics and batteries in various countries in Asia, Europe and North America. Not only SHOWA DENKO Group is the first manufacturer since 1971 but also has been presently poised to rank one of the five largest producers of its kind with 3 operational and technical support facilities in Japan. In addition, there is a subsidiary running an aluminum can factory under the SHOWA DENKO Group’s corporate umbrella in the northern part of Vietnam.

SHOWA DENKO Group and CBG’s jointly invested aluminum can factory is located on 32 rais of land in Bang Pakong District of Chachoengsao Province with production capacity of 1,000 million cans per year.