Saigon Paper

Saigon Paper Corporation ("SGP") is a leading low cost, high quality manufacturer of tissue products (including tissue, toilet rolls and napkins) and industrial paper (including medium, testliner, chipboard and duplex boards) in Vietnam. SGP sells high quality Tissue and IP products in Vietnam and exports internationally. SGP's Tissue products are sold via distributors (General Trade) and direct to large retailers (Modern Trade) and out-of-home (OOH) customers, while IP products are sold direct to business customers. SGP is finalising the construction of its new state-of-the-art manufacturing facility, My Xuan 2, which began staged opening in April 2012 and is expected to be fully operational by 2014. The two mills have combined production capacity of 48,360 tonnes p.a. for tissue products (Tissue) and 224,600 tonnes p.a. for industrial paper products (IP). Its manufacturing facilities are located in a dedicated industrial park ~70 km south west of Ho Chi Minh, Vietnam's commercial centre and largest city, close to the country's largest port. SGP expects further increase in Tissue volume as production at My Xuan 2 is ramped-up and the additional investment of one new Tissue machine with production capacity of 28,000 tonnes p.a. SGP owns the number one Vietnamese Tissue brand as well as the most extensive Tissue distribution network in the country. These, together with increased production capacity, will enable SGP to increase sales volume and therefore achieve significant sales growth in the coming years. The Company expects revenues to increase to USD 200 million in 2015 and USD 500 million in 2020.