On June 19, under the witness of Deputy Prime Minister of the Socialist Republic of Vietnam – Mr. Vuong Dinh Hue, together with Mr. Kwak Young Kil, Chairman of Aju Communication Group and Oriental Express Foundation, President of Vietnam – South Korea Economic and Cultural Exchange Association, An Phat Holdings and TLC Company (Korea) have signed a Memorandum of Understanding (MoU) on the Strategic Cooperation in the research and production of bio compostable materials in Korea and Vietnam.
According to this strategic cooperation, An Phat will contribute 51% of the capital to TLC Company for the two parties to implement the following strategic objectives:
– Producing bio compostable materials and products made from these materials for Korean market
– Establishing R&D Center (Research & Development) in Korea for bio compostable materials
– Investing in building a bio compostable factory in Vietnam, estimated value of USD 100 million. This will be the first plant to produce PBAT (a bioplastic) in Southeast Asia, the design capacity will gradually increase and is expected to be 50,000 tons / year by 2025, foremost providing products for Asian markets.
The strategic cooperation with TLC is a new step of An Phat Holdings in an effort to expand the international market and diversify products made from bio compostable materials as well as participating in the global protection environment value chain.
An Phat has paid much attention to South Korean market as well as maintaining good cooperation with many South Korean customers.
About two years ago, Samsung Securities Company Limited, a subsidiary of Samsung Group, introduced to more than 300 investors in South Korea about the opportunity to invest in An Phat Bioplastics (AAA), owned by An Phat Holdings. In February 2018, a South Korean investment fund named Valuesystem invested US $ 15.6 million, equivalent to VND 353 billion into An Phat Holdings. Also in 2018, An Phat Holdings officially opened a representative office in South Korea with the purpose of understanding the market, customers’ needs for packaging products, especially products made from bio compostable materials. After a period of research, An Phat Holdings found that South Korean market is very attractive for producing bio compostable products, and TLC plays a vital role to accomplish this goal. Since then, An Phat Holdings and TLC have worked together for over 6 months to appraise the project, design appropriate business models along with planning the project strategies.
As part of the strategy to expand and develop bio compostable products globally, in addition to cooperating with TLC in South Korea, An Phat is also planning to build a specialized factory in producing bio compostable products and environmentally friendly ones in the US, named An Phat USA. The plant is expectedly invested with a line of modern machines and advanced technology. It is estimated that the products will be mainly provided to the North American market.
Currently, An Phat is the first manufacturer in Vietnam to be granted the TUV Vincotte OK HOME COMPOST international certificate for AnEco bio compostable products (compostable bags, gloves …). An Phat is also the only enterprise in Vietnam and one of the five Asian representatives joined in the European Bioplastic Association.
