Rengo Co.'s Thai joint venture Thai Containers Group Co., Ltd. will acquire a 90% stake in Thai corrugated cardboard maker Jin Zhong Fa Paper Industrial, the Japanese packaging company said on September 17.

Jin Zhong Fa Paper Industrial operates one corrugated cardboard plant in Chonburi province in eastern Thailand. Following the acquisition, the Rengo group's corrugated cardboard network in Thailand will expand to 16 plants from 15.

Rengo currently operates in Thailand through Thai Containers Group, or TCG, with 15 corrugated cardboard plants, three flexible packaging plants and one heavy-duty packaging plant. TCG is owned 30% by Rengo and 70% by SCG Packaging.

After the transaction, TCG will hold 90.0% of Jin Zhong Fa Paper Industrial, while Power Pillars Co., Ltd., described in the release as the holding company of the current investor, will own the remaining 10.0%.

TCG manufactures and sells corrugated cardboard, paper containers and flexible packaging. Jin Zhong Fa Paper Industrial manufactures and sells corrugated cardboard.

Rengo said corrugated cardboard operations in Thailand and elsewhere in Southeast Asia are positioned as an important strategic business for the group under its General Packaging Industry, or GPI, initiative, and that it plans to continue expanding the business.

Thailand is one of Southeast Asia's manufacturing hubs, supporting demand for packaging used in consumer goods, industrial products and export supply chains.