Ichitan plans to double output after 2nd-phase expansion
Ichitan Group plans to invest between Bt2 billion and Bt3 billion in the next two years for the second phase of its expansion programme, which will double the production capacity of its green-tea drinks at its Rojana plant in Ayutthaya, said Tan Passakorn
The plant currently occupies 50,000 square metres, while the new building to be constructed in the second-phase expansion will require another 20,000-25,000sqm. Both buildings are on the same 76-rai (12-hectare) plot at Rojana Industrial Park.
The expansion will serve the increasing demand for ready-to-drink green tea in the domestic market. The company also plans to export its Ichitan green tea to regional markets to cash in on the coming Asean Economic Community, which will be fully effective in 2015.
The first phase will be completed in the next two years, when the plant will have three production lines for plastic bottles and another three lines for UHT (ultra-high-temperature treated) packs. At that time, the plant will be able to produce 600 million bottles of green tea per year (200 million plastic bottles for each production line), plus 390 million UHT packs (130 million for each production line).
Ichitan aims to increase its sales from the Bt3 billion expected this year to about Bt5 billion by 2013.
“We expect to double our production capacity in the second-phase expansion, with construction of the new plant starting at the beginning of 2014. Construction will take about 10 months, and the plant will start operation by the end of 2014,” Tan said.
He said the new expansion would serve the company’s plan set to achieve Bt10 billion in total sales in the next five years, of which 20 per cent will be from export.
Tan said Ichitan’s Bt3.5-billion green-tea plant had resumed production on March 8 after being damaged by the massive flood that hit Rojana Industrial Park last October and damaged most of its bottling and UHT facilities. The company will hold the grand opening of its Rojana factory tomorrow, after postponing it from November 11 because of the flood.
The company has invested another Bt2 billion to purchase new machinery to replace that damaged at the plant. Currently, the plant is running one production line for both bottles and UHT packs at about 80 per cent of its full capacity. A second production line for both bottles and UHT packs will be installed by next month and will start operation by September. It will double the existing capacity at the bottling plant.
A third production line for both bottles and UHT packs will be added by next year, bringing the plant to its full production capacity in the first phase, at 600 million plastic bottles of green tea and 390 UHT packs per year.
“With the second-phase expansion, we will also focus on the production of healthy drinks and fruit juices,” Tan said.
He said the overall market for ready-to-drink green tea grew by 21 per cent last year despite the flood. It is expected to increase by another 30 per cent this year to about Bt12 billion in market value. Ichitan expects its share of the local green-tea market to increase from 17.6 per cent currently to 20 per cent by the end of the year.
