Panjawattana Plastic earmarks Bt566m for expansion
Panjawattana Plastic has set aside Bt566 million to expand its manufacturing plants in Chon Buri and Samut Sakhon provinces to help achieve its sales target of Bt3.5 billion by 2017.
CEO Wiwat Hemmondharop said the firm’s board of directors had approved its business plan to increase the production capacity of its two plants, adding that investments for the project will begin in the third quarter and be completed by 2015.
Up to Bt200 million will be raised via the stock exchange through an initial public offering, while the rest will be borrowed from the bank.
The company is boosting its production capacity in order to support the auto industry, which is showing strong growth and the demand for plastic is increasing. The changes in the manufacturing process will also cut down the need for labour, and hence bring production costs down.
"We are aiming to achieve a total revenue of Bt3.5 billion by 2017 once our investments are complete and operations begin by 2015," he said.
In the first quarter of this year, the company earned Bt518.16 million in total revenue and Bt52 million in net profits. It is aiming for a total revenue growth of up to 20 per cent this year from Bt1.64 billion last year.
The company’s key customer base is the auto industry as well as packaging for food and beverages. Panjawattana Plastic was established in 1987 with a registered capital of Bt10 million. The firm was listed in the Stock Exchange of Thailand in 2011 with a registered capital of Bt276 million. Its major shareholder is the Hemmondharop family.
