The 7-year convertible loan will be used to support the implementation of the $82 million plant, which is expected to start construction in early 2021.

The plant with 20,000 tons capacity per year will be built in about 18 months and completed by the end of 2022.

When the project is completed in 2022, An Phat expects to reduce production costs by 20-30 percent for subsidiaries while the parent company still enjoys a gross profit margin of 25-30 percent of this project, it said in a statement.

An Phat targets that by 2023 compostable products will contribute 40-50% of the Group’s packaging revenue.

As the largest market cap plastic stock in Vietnam, its market capitalization reached approximately $414 million after nearly 3 months of listing (as of October 16, 2020).

Photo: Baodautu.vn

Accordingly, one of the most important reasons when IFC chooses to invest in An Phat’s compostable material manufacturing plant is its high possibility of success that help the corporation improves its competitive moat, especially when it is the first manufacturer of compostable products in Vietnam.

Currently, An Phat is the largest thin monolayer film manufacturer in Southeast Asia with 20 percent of the market share of Vietnam’s thin monolayer film exports.

An Phat Holdings (HoSE: APH) is the parent company of more than 15 member companies operating in the fields of packaging, compostable products & compounds, engineering plastics & building materials plastics, raw materials and chemicals for plastics industry, precision engineering & molding, industrial real estate.

This is the first cooperation between APH and IFC to promote and contribute to the development, production and export of green materials and products in Vietnam.

Source: NhipCauDauTu