Dongwon Systems, Korea’s largest producer of packaging materials, has kicked off the operation of its Bac Ninh factory near Hanoi, Vietnam after capacity expansion worth $10 million.

The company said on Thursday it held a ceremony to inaugurate the new production line and is ready to roll out plastic bottles and other packaging materials for some 200 food and cosmetics customers including Unilever and P&G.

Dongwon Systems runs another large plant in Ho Chi Minh City whose annual revenue reaches more than 100 billion won ($93.8 million). The company said its capacity upgrade in Vietnam will make its products more cost competitive in the global market and bring more efficiency to its entry into the whole Asian market.

“Vietnam is a burgeoning market with annualized growth of 6.8 percent last year. We will go aggressive in marketing to Vietnam and other Asian countries with the momentum of the Bac Ninh factory expansion,” said a Dongwon Systems official.

The company aims to double its annual sales from Vietnam to 200 billion won within three years.

Dongwon Systems shares closed Thursday up 0.76 percent at 46,700 won.

By Ahn Byung-joon and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]