Eka Global, a Thai plastic packaging company, will increase its production capacity by 15% to benefit from growing packaging demand, driven by the circular economy, the Covid-19 impact and global economic recovery.
Chaiwat Nantiruj, group chief executive of Eka Global, said the firm saw opportunities in Thailand and overseas and so it will increase production by 350 million pieces, up from current annual capacity of 2.5 billion pieces.
"The company prepared a budget of US$3 million to buy new machinery. We expect it will start commercial production in September," he said.
Eka Global's production facilities are running at full capacity and cannot meet the rising demand for packaging products.
The company exports packaging products to Europe, the US, India, China, Japan and countries in Asean.
"Our products are 100% recycled and environmentally friendly," said Mr Chaiwat.
"We will do more to follow the rising trend of the circular economy."
The circular economy is based on an upcycling process to add value to unwanted materials, making them usable again.
Eka Global specialises in making longevity food packaging.
The company wants to play a key role in helping reduce plastic waste. It will continue to make considerable investment in research and development to produce more environmentally-friendly packaging products.
"We are currently researching and developing new longevity packaging by using plants as raw materials instead of oil," said Mr Chaiwat.
This year, Eka Global expects its revenue will increase by 15-30% year-on-year to 1.2 billion baht.
Mr Chaiwat said the pandemic is a key factor encouraging people to change their lifestyles.
Longevity packaging will become more popular as people are looking for packaging that can ensure high safety and convenience.