SCGJWD Logistics Public Company Limited (SJWD) further expanded the Company's business portfolio abroad, closing new deals with two customers in Vietnam, worth a combined 450 million baht. One contract, a four-year extension, was concluded with Vina Kraft Paper Company Limited to continue the expansion of its logistics services for another four years and the cooperation on the project to utilize electric vehicles in the quest towards Net Zero. Another new contract was signed with A.J. Plast (Vietnam) Company Limited to provide complete logistics service in the form of "end-to-end logistics & supply chain financing solution", in the provision of the transportation services of machinery from Thailand to Vietnam including the installation to support the phase-2 plant expansion. This project will also be a collaboration with Transimex Corporation, SJWD's logistics partner in Vietnam, to co-provide services. A plan is also underway to negotiate further opportunities for additional construction of a new warehouse together with the management deal.
Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, revealed that, in relation to the Company's 2025 business plan that puts the focus on the expansion of the overseas businesses as a main strategy, Vietnam is one of the countries that SJWD is most interested in to expand its business because that country's economy has shown high growth potential and is likely to benefit the most from China's relocation and expansion of production bases from that country to the ASEAN region, to reduce the impact from the volatility of the trade war. In this year, the Company has planned to aggressively and continuously expand logistics and supply chain services as well as to extend its expertise in providing end-to-end logistics & supply chain financing solution services to customers in various industrial sectors in Vietnam, including companies within the SCG Group and all other industrial customers.
Most recently, SCGJWD Logistics (Vietnam) Company Limited (formerly SCG International Vietnam), a wholly-owned subsidiary of SJWD, has signed new contracts with two customers in Vietnam: (1) Vina Kraft Paper Company Limited (VKPC), an SCGP Group company, a leading packaging paper manufacturer in Vietnam, as well as being a joint venture between Siam Kraft Industry Company Limited (an SCGP Group subsidiary) and Rengo Company Limited of Japan; and, (2) A.J. Plast (Vietnam) Company Limited, a manufacturer of plastic film for packaging, and a joint venture between SCG Chemicals Public Company Limited and A.J. Plast Public Company Limited of Thailand. The combined value of the two new contracts worth over 450 million baht will help to strengthen the Company's performance and generate higher revenue in Vietnam.
SCGJWD Logistics (Vietnam)'s logistics services contract with Vina Kraft Paper was for an additional four years (2025-2028) and was stipulated to provide transportation services for recycled paper to Vina Kraft Paper's factory, as well as the cooperation in the project to convert to electric-powered vehicles within Vina Kraft Paper's factory and warehouses, a part of which is to gradually replace diesel-powered forklifts with EV forklifts to reduce carbon emissions with the main aim to achieve Net Zero target and to investigate the value in reduced logistics costs.
Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SJWD, meanwhile, said that the new contract with A.J. Plast (Vietnam) will expand the end-to-end logistics & supply chain financing solution services to support the expansion of that company's phase-2 plant expansion by providing transportation services of machinery from the A.J. Plast plant in Thailand to Vietnam via sea freight, the machinery installation services, and the management of warehouses in the phase-2 plant following the completion of the installation of the machinery and the commencement of production. This project will be supported by Transimex Corporation, SJWD's logistics partner in Vietnam, who will help to provide machinery extraction services from containers and the in-land transportation in Vietnam.
In addition, SCGJWD Logistics (Vietnam) has a plan to negotiate the expansion of its services to A.J. Plast (Vietnam) that has in the pipeline the plan to build a new warehouse. The Company expects to leverage the investment and the construction of the new warehouse in the "built-to-suit" arrangement according to the specific needs of the customer, either for direct delivery or long-term lease, along with the provision of warehouse management and logistics services.
"The Company is expanding its services in the form of end-to-end logistics & supply chain financing in Vietnam to meet the specific needs of each customer, with the aim to help increase per-project revenue. And in addition to the new contract with A.J. Plast (Vietnam), SJWD is also negotiating with another customer in Vietnam, with the conclusion expected to materialize in the second half of this year," Mr. Charvanin added.