RKW invests in Vietnam and SEA

Privately-owned, Germany-headquartered PE/PP films maker RKW is strengthening its position in the Southeast Asian market with strategic multi-million Euro investments in technology, infrastructure and workplace safety. These include a new printing line for multipack films, expansion of the total building area and the optimisation of building technology at the site in Vietnam. With the expansion, RKW Lotus is now operating as RKW Vietnam.

RKW has based its expansion into the markets of Vietnam and the neighboring countries of Malaysia, Indonesia, Myanmar and Laos on the latest production technology for high-quality packaging solutions. To enable the production of printed multipack films for beer, mineral water and soft drinks, the company has invested in a new line for high-quality film prints at its site in Ho Chi Minh City. Manufactured in Europe, the new machine is expected to be commissioned and to start production by the end of 2016.

“In addition to unprinted multipack films, we are now able to produce printed versions in Vietnam for the first time. Local beverage manufacturers who traditionally packed their products in cartons are now able to access these eye-catching and robust alternatives. Thanks to high-quality processing, we can meet the demanding quality standards of many different products”, explained Oliver Dirmeier, Managing Director of RKW Vietnam. Made from polyethylene (PE), the high-performance packaging solutions support a variety of customised prints and their excellent stability ensures maximum transportation safety.

“Our printed multipack films can be recycled”, Dirmeier explains. “As one-component systems, they do not require elaborate separation of different materials and can be further processed after use into new PE solutions. In this way, RKW is ensuring especially resource-saving production of sustainable multipack films.”

The company has also begun the expansion of its total building area. The current area will be enlarged by 50% with the goal of ensuring shorter distances between production units and streamlining work processes. “Through the expansion, we will be creating a coherent production site that not only integrates existing buildings but also provides the necessary space for further investments”, said Dirmeier. In the course of the initiative, RKW has also consolidated and rehoused several groups of machines, including extrusion and bag making lines. This will enable the implementation of future projects, such as the planned expansion of draw tape bag capacities and other high-quality products.

To strengthen the company’s market position, RKW has been continuously optimising product and work safety at the Vietnamese site as well. To this end, the existing building technology has been extensively modernised. “Safety is not just a matter of having the right protective equipment, but concerns the attitude of all staff. That is why we have been increasing awareness of the issue among all our colleagues to create a safety culture that will benefit everyone”, Dirmeier concluded.

RKW says it is the market leader in the areas of hygiene and agricultural films, films for the beverage industry and packaging for powdery goods. In addition, the company makes films and nonwovens for medical applications, for the chemical and converting industries as well as for the construction sector.

In the fiscal year 2015, RKW generated total sales of EUR953 million. About 3,000 employees process over 405,000 tonnes of plastic materials at more than 20 locations around the world.