Srithai plans expansion in Asian market

Srithai plans expansion in Asian market

Srithai Superware Plc, the world's leader for melamine and plastic package and container products, will spend 850 million baht to beef up its operations in Asia to exploit regional economic growth.

Mr Sanan: Srithai will exploit economic growth in Asean with fresh investments in many countries in the next two years.  No photo byline 

The plans include opening new melamine and plastic production plants in Vietnam, Indonesia and Myanmar over the next two years. The investment is part of the company's attempt to raise sales in the region over the next five years, said Srithai president Sanan Angubolkul.

Srithai set up its first melamine factory in Vietnam in 1994, and in 2013 opened a plant to make plastic packages. Srithai will invest 250 million baht on a third plant in Hanoi, expected to be ready later next year.

"Vietnam has high market potential as about 60% of the population are around 35 years old, a big-spending consumer group," said Mr Sanan. Sales in Vietnam this year are expected to grow 40% year-on-year to 1.2 billion baht.

The company also allotted 250 million baht to build a new plastic bottle and melamine factory in Rangoon in 2016, and a plant is earmarked for Jakarta next year to make plastic packages and containers for household and industrial uses.

"The new operation in Jakarta may be a joint venture between Srithai and a local partner," he said.

Srithai entered Indonesia in 1995, setting up a melamine factory in Surabaya, and it enjoys annual sales of about 100 million baht. Mr Sanan said the expansion would double sales income.

He said the budget will also be used to set up a representative office in Malaysia and in preparation for increased capacity at its plants in India.

Srithai set aside another 400 million baht for local expansion this year and next. It is forming a joint venture, Superidea Co, with an Italian partner to sell outdoor plastic furniture produced by a Srithai plant in Nakhon Ratchasima to Thai and Asean markets.

Mr Sanan expects Srithai sales revenue this year of 10 billion baht, with 8.5 billion from the domestic market and 1.5 billion from overseas.

SITHAI shares closed Friday on the SET at 2.50 baht, down four satang, in trade worth 10.8 million baht.

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