Japan’s Daio Paper has unveiled a new joint venture (JV) with the Thai firm Saha Pathanapibul to produce and market baby diaper products in South-east Asia.

The JV, which is called Elleair International, will operate a converting plant in Rayong, Thailand. Construction of the ¥3 billion ($37 million) facility will start this year, and it is expected to be up and running by the beginning of 2012.

Daio Paper owns 85% of the JV. Besides Saha Pathanapibul, which will hold 10%, another Thai company Sanko will have a 5% share.