PHILIPPINES (News release) -- Rengo Co., Ltd. has agreed with SCG Packaging Public Company Limited, a Siam Cement Group company, on the underwriting of an increase in capital of United Pulp and Paper Co., Inc. (UPPC), a containerboard manufacturing and sales company in the Philippines that is a subsidiary of SCG Packaging, and the acquisition of 25% of the shares in UPPC.

Rengo's underwriting of the capital increase of UPPC is subject to approval by the Philippines Securities and Exchange Commission, and it is planned that the acquisition of the shares will be completed during the 1Q of 2020.

UPPC has a production capacity of 230,000 tonnes of containerboard from two paperboard machines at its mill in Calumpit, Bulacan, approximately 50 km north of Metro Manila, and is the leading domestic supplier of containerboard in the Philippines, with the top share of containerboard production.

The company is currently in the process of building a third paperboard machine for producing containerboard which it plans to complete by the end of 2020, and which will double the production capacity when the new paperboard machine becomes operational.