Dashengda plans to invest 188 million yuan to build a cardboard packaging project in Thailand
Recently, Dashengda announced that based on the company's development strategy and actual situation, it plans to transfer some unused raised funds and interest from the "Pulp Molding Environmental Protection Tableware Intelligent R&D Production Base Project" to the new project "Thailand Packaging Carton Production Base Construction Project". The total investment of the new project is 188 million yuan, and after it is put into operation, it will form a production capacity of 50 million square meters of corrugated cardboard boxes per year.
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The external environment has undergone tremendous changes, and there will be no further investment in the second phase of the paper and plastic project
The main implementing entity of the "Pulp Molding Environmental Protection Tableware Intelligent R&D and Production Base Project" of Dashengda is Hainan Dashengda Environmental Protection Technology Co., Ltd. As of now, the first phase of the project has been put into operation and has successfully obtained multiple relevant certification and testing certificates such as the US FDA, EU LFGB, and UK BRC. The main projects such as the second phase factory and workshop have been basically completed, but the purchase plan for the main production equipment and related auxiliary equipment is temporarily suspended.
The announcement pointed out that the main reason for the temporary suspension of the purchase of equipment in Phase II is due to significant changes in the external market environment. In October 2024, the US Department of Commerce officially issued a notice to initiate anti-dumping and anti subsidy investigations (hereinafter referred to as "double anti-dumping investigations") on thermoformed molded fiber products (including pulp molded tableware) originating in China and Vietnam. Affected by this, American customers are highly concerned about the official ruling of the US Department of Commerce and have shown extreme caution in new supplier certification and order placement.
At present, the US Department of Commerce has announced the preliminary results of the "double anti-dumping investigation", proposing to impose anti-dumping duties of up to 477.97% and countervailing duties of up to 153.25% on related products originating from China. Although the final ruling still needs to wait for further investigation, such a high preliminary tax rate undoubtedly has a significant impact on the normal development and operation of the project.
Given the current uncertainty in the external market, Dashengda has decided to maintain the production scale of the existing Phase I project and will not further invest in the planned Phase II project. The remaining portion of the raised funds will be redirected to the "Thailand Packaging Carton Production Base Construction Project" to effectively ensure the quality of the project's implementation and the efficiency of fund utilization.
In the announcement, Dashinda also said that the company would continue to pay attention to the results of the "double anti investigation" in the United States, and shift the focus of overseas market development to Europe, Japan, Southeast Asia and countries along the "the Belt and Road", while actively exploring the domestic market to reduce the adverse impact of the "double anti investigation" in the United States.
02Invest 188 million yuan to build cardboard box project in Thailand
It is reported that the total investment of the new project "Thailand Packaging Carton Production Base Construction Project" is 188 million yuan, and the construction site is located in Chumphon Province, Thailand. It will plan to build modern production workshops and supporting warehousing facilities, integrate packaging design and localized production, and form diversified product supply capabilities, aiming to build a supply chain service system covering the Southeast Asian market.
After the project is put into operation, it can form an annual production capacity of 50 million square meters of corrugated cardboard boxes. The products will directly serve customers in the furniture and home appliances, automobile manufacturing, electronic products, e-commerce logistics, photovoltaic new energy and other industries in Thailand and surrounding countries. At the same time, it will undertake packaging support orders from multinational enterprises in Southeast Asia.
At present, the global supply chain pattern is accelerating its adjustment, and Southeast Asia has become the core region for the growth of the packaging industry through the transfer of manufacturing and the expansion of e-commerce industry. As an economic hub of ASEAN, Thailand's advantageous geographical location, open investment policies, and rapidly developing industrial foundation provide strategic opportunities for Da Sheng Da to expand into overseas markets.
At the same time, Dashengda has been rooted in the paper packaging industry for many years, and its long-term cooperative clients include multiple Fortune 500 companies, China's top 500 companies, and leading enterprises in segmented industries. Some of its major clients have already established factories in Thailand. These high-quality and stable customer resources provide the Dashengda Thailand cardboard project with market support in industry competition.
How should companies respond when the external environment changes? Dashengda undoubtedly provides a valuable answer for reference. Faced with the rapidly changing market environment, Dashengda actively seeks change and demonstrates strong adaptability and strategic vision by accurately grasping market dynamics, laying a solid foundation for the long-term development of the enterprise.