On January 5, Anhui Sentai Wood-Plastic Group Co., Ltd., or Sentai Shares, announced its latest plan. In order to optimize its overseas supply chain and production base layout, Sentai Shares plans to invest no more than RMB 140 million to establish an investment platform in Singapore and ultimately build a new production base for high-performance wood-plastic composite materials in Vietnam. This move is regarded as a key step in further improving the company's strategy of being rooted in China and going global after completing its layout in Europe, Thailand, and the United States.

The announcement shows that the company's board of directors reviewed and approved the relevant proposal on January 5, 2026. According to the plan, the company will establish a wholly owned investment subsidiary in Singapore, and this subsidiary will then invest in a wholly owned manufacturing subsidiary in the Tianhai Industrial Zone of Hung Yen Province, Vietnam, responsible for land acquisition, plant construction, and equipment procurement. The total registered capital of the two proposed companies will not exceed USD 20 million. The Vietnam production base will focus on the production and sales of high-performance wood-plastic composite materials and new stone-wood-plastic composite materials.

In fact, Sentai Shares had already established a presence in Vietnam. In April 2023, the company set up Vietnam Sentai Environmental Protection New Materials Co., Ltd. and began production by leasing factory buildings. This new investment in a self-built production base is driven on the one hand by the fact that the original lease is about to expire and renewal costs are relatively high, and on the other hand by the need to establish more stable and independent overseas production capacity. After the new base is completed, it will work in coordination with the company's production base in Thailand, enhancing supply assurance and response capability for global customers, especially in Southeast Asia and other overseas markets.

Sentai Shares said that Vietnam has comparative cost advantages in land, environmental protection, labor, and taxation, while industrial chain support is becoming increasingly complete, making it suitable for the construction of overseas production bases. This move will help the company optimize production costs, get closer to market demand, and further enhance its international competitiveness and brand influence.

Against the backdrop of the accelerated overseas expansion of Chinese enterprises in recent years, Sentai Shares' plan to build a factory in Vietnam is both a deepening of its own globalization strategy and a reflection of the broader trend of Chinese building materials enterprises seeking cost optimization and market expansion amid the restructuring of global supply chains. The implementation results of this project will directly affect the company's competitive position in international markets and its long-term growth potential.

Source: 77 Degrees