Steel-pipe maker eyes 'integration'
Thai-German invests to meet demand
Thai-German Products plans to spend Bt362 million on expanding production capacity to cash in on the seamless regional market.
“We see the regional market integration of Asean as enlarging our customer base, particularly in Myanmar, Cambodia and Laos, where consumption of stainless-steel pipes is still low,” managing director Rachata Leelaprachakul said yesterday.
New advanced machines will be installed to manufacture three-dimensional stainless-steel products, an innovation, and boost total output from 1,000 tonnes per month to 1,500-2,000 tonnes. The expansion is needed to cope with rising demand both here and abroad.
The company’s sales are targeted to jump 40 per cent this year after the new 3D product, which is a popular material for furniture manufacturing, is launched late this year.
The company hopes to operate at 4,000 tonnes per month within three years, with a plan to add another work shift.
Last year, the company reported revenue of Bt1.13 billion, of which the domestic market controlled the lion’s share with Bt1.03 billion. This year, sales reached Bt288 million in the first quarter, of which the domestic market accounted for Bt276 million.
The Asean Economic Community will allow the company to increase its exports to 30 per cent of total sales.
The company’s products are divided into three groups – industrial tubes used in heavy industry, sanitary tubes used in food factories, and ornamental tubes used in furniture manufacture. The company aims for an almost equal share of these products except ornamental tubes, which would control 30-40 per cent.
Apinun Rachatasombat, deputy managing director, said the company still shouldered retained losses of Bt155 million, which it cannot wipe out this year. However, paid-up capital has climbed to Bt845 million of registered capital of Bt1.07 billion.
