TCP targets Myanmar with plant

TCP targets Myanmar with plant

The construction site of TCP's future factory in Thilawa Special Economic Zone.
The construction site of TCP's future factory in Thilawa Special Economic Zone.

TOA-Chugoku Paints (TCP) has earmarked 500 million baht to construct its first overseas paint factory in Myanmar, expecting to capture demand from megaprojects.

The new factory will produce two paint products -- heavy-duty coating and marine paint -- with a monthly capacity of 300 tonnes.

The project will be located in Thilawa Special Economic Zone on an area of 12 rai. It is scheduled to begin operations in April 2020.

TCP set up a new local unit in Myanmar, Chugoku-TOA Paints Myanmar, to operate the factory.

Chugoku Marine Paints (CMP) from Japan holds a 51% stake in the Thilawa company, while TOA Venture Holding (TOAVH) from Thailand owns the remainder.

Pisit Boonchanya, TCP's managing director, said the Thai company started exporting two paint products from Mae Sot district to Yangon and Thilawa in 2012. The Thai and Japanese arms decided early this year to invest in a plant in Myanmar.

"Myanmar opened for new business and investment flows five years ago. There are many megaprojects awaiting development and expansion," he said.

"We will capture many business sectors there -- fishery crafts, shipment vessels and construction -- as well as distribute our paint products to Myanmar's navy agencies."

Myanmar's heavy-duty coating and marine paints have a market value of roughly 300 million baht, of which TCP captured a 70% market share with exports from Thailand, said Mr Pisit.

He said the Myanmar business plan is part of TCP's expansion abroad, with plans to enter Cambodia, Laos and Bangladesh in the near future.

"Once we achieve revenue of 300 million baht in Myanmar, we will consider further overseas expansions for the manufacture of paint and coating," said Mr Pisit.

The company aims to achieve 500 million baht per year in sales in the first five years of operations.

At home, TCP is a joint venture between TOAVH and CMP, who hold 51% and 49% stakes, respectively.

The manufacturing plant is located at Wellgrow Industrial Estate in Chachoengsao province with a total monthly capacity of 2,000 tonnes in heavy-duty coating, marine paint and container coating.

Mr Pisit said in 2018, TCP captured a market share of 50%, while the market totalled at 4 billion baht, largely in heavy-duty coating and marine paint.

In 2018, TCP had sales of 2 billion baht, of which 1.4 billion was from heavy-duty coating.

The remaining 600 million baht came from marine paint and container coating.

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