Bangkok--1 Aug--EXIM Thailand
EXIM Thailand, as lead arranger, and two syndicated partners, namely, CIMB Thai Bank and TISCO Bank provide a loan worth 1.52 billion baht to support the expansion of Union Mosaic Industry Public Company Limited (UMI)’s manufacturing capacity to boost domestic sale and export. The loan will be used to finance UMI’s acquisition of T.T. Ceramic Company Limited (TTC), a major manufacturer of porcelain tiles, following UMI’s recent joint venture with Royal Ceramic Industry Public Company Limited (RCI), a leading manufacturer of wall tiles.
Mr. Somporn Chitphentom, Senior Executive Vice President of Export-Import Bank of Thailand (EXIM Thailand); Mr. Vorakan Dhepchalerm, First Executive Vice President, CIMB Thai Bank Public Company Limited (CIMB Thai); Ms. Nipa Mekara, Head of Corporate Lending of TISCO Bank Public Company Limited (TISCO Bank); Ms. Voranuch Supaibulpipat, Head of Relationship Management, TISCO Bank’s Corporate Lending; Captain Seranee Phenjati, Chairman of the Board of Directors, Union Mosaic Industry Public Company Limited (UMI); and Ms. Paweena Laowiwatwong, Chairman of the UMI’s Executive Board of Directors and President, signed a syndicated loan facility agreement worth 1.52 billion baht at EXIM Thailand’s Head Office on July 30, 2012. This financial support aims to facilitate the expansion of UMI’s manufacturing capacity and distribution of floor tiles, wall tiles and mosaic tiles under the brands of Duragres and UMI in both domestic and overseas markets.
The loan facility, which comprises both short- and long-term credit lines totaling 1.52 billion baht, will be provided to UMI, which maintains two manufacturing plants in Saraburi province. Following its recent joint venture with RCI, UMI will use the funding to enhance its production capacity through the acquisition of TTC. This will result in an increase of UMI’s manufacturing capacity from 20 million square meters per year to 36 million square meters per year. Apart from cost saving as a consequence of the merging capabilities as opposed to building a new plant, the deal helps reduce marketing and logistics expenses since all the facilities are located close by. Further, such undertaking will be reinforced by the strength of the RCI brand which will lead to an increased market share both at home and abroad of the integrated range of tile products encompassing floor, wall, and porcelain tiles.