THAILAND: EPG eyes innovations in core goods

Eastern Polymer Group Plc (EPG), a Stock Exchange of Thailand (SET)-listed maker of synthetic rubber and plastic products, has earmarked 100 million baht for research and development from 2017 to create innovation in its three core businesses.

 

The core businesses are thermal/cold insulation, plastics for auto parts and plastics for food packaging. The innovations will be aimed at increasing export value, expected to account for 70% of company revenue in 2017, up from 62% now.

President and chief executive Pawat Vitoonrapakorn said EPG wanted to ramp up international revenue to 10 billion baht within a couple of years. An American investor has approached subsidiary Aeroflex Co about forming a joint venture to develop a super-premium grade of thermal/cold insulation for aeroplanes and spaceships. The venture would help to improve existing technologies and create new ones for Thai industry, particularly the automotive sector, Pawat said. Aeroflex will also expand sales of thermal/cold insulation in other Asean members, particularly Vietnam, the Philippines and Indonesia.

Demand for insulation in those countries' construction sectors is poised to grow substantially. The company also plans to expand its business in Japan and the US, focusing on pharmaceuticals and foods, both of which commonly require thermal/cold insulation for cooling and freezer systems and air conditioners.

Another subsidiary, Aeroklas Co, plans to develop a new premium-grade plastic for the auto-parts sector, for which demand is expected to grow substantially, particularly a new plastic grade for pickup truck deck covers. "We're developing innovations that match several models of deck covers in a bid to become an auto-parts leader," Pawat said.

In another development, the company board has approved a second factory for food-packaging plastic under its EPP brand. Pawat said the new facility would be located in Rayong's IPP Industrial Park. It will boost annual production capacity by a third to 32,000 tonnes. "The new factory will also help us to cut labour costs by 70% thanks to the efficiency of the high-tech machinery," Pawat said.

He expects EPG will enjoy a good second-half performance, on a par with the first half, thanks to rising demand, especially for food-packaging plastic during the year-end festivals. Full-year revenue is expected to rise by 25-30% to between 8.5 and 9 billion baht.

Source: Daily “The Bangkok Post”, Bangkok; 20 Nov 2015
(Syed Rashid Ali, Karachi, Pakistan)