Bangkok--16 Aug--Padaeng Industry
- Consolidate sustainable supply mix from ores and recyclables
- Expand production and sales of zinc alloys
- Introduce companywide Operational Excellence
For the second quarter of 2012, Padaeng Industry Public Company announces a consolidated net loss of 126.47 MTHB, compared to a net loss of 26.68 MTHB for the same quarter of previous year.
The net loss of the first half of 2012 reaches 173.53 MTHB, compared to the same period of the previous year which posted a net profit of 186.77 MTHB.
Despite the 15% drop in the LME average zinc price in the second quarter, from 2,254 USD/t in Q2-2011 to 1,928 USD/t, sales and services increased by 227 MTHB or 12% to 2,106 MTHB, against the same period of previous year.
Cost of sales increased by 16% year-on-year from 1,814 MTHB to 2,107 MTHB. This is mainly due to a lower share in raw materials from the less expensive zinc silicate ores and lower gross margin on imported zinc sulfide concentrates due to low zinc prices and lower treatment charges. Second cause is the significant higher operating costs arising from a sharp increase in the prices of electricity, fuel and reagents.
Since warehouses all over the world have reached record highs in zinc stocks, no improvement in zinc prices is expected in the short term.
In order to turn the company back into profit, a strategic improvement roadmap has been launched. The project portfolio focuses on operational excellence improvements for the overall process from supply to sales. A positive impact is expected as from 2013.
On top of a wide range of dedicated improvement projects, the major contributions will come from:
- Increased capacity of the washing plant for crude zinc oxides originating from Electric Arc Furnace (EAF) steel dust recycling operations in and outside of Thailand, making the supply less depending on the costly intake of zinc sulfide concentrate.
- Improve the recovery of metals from by-products, enabling the company to be more competitive in the treatment of complex ores
- Expand production and sales of alloys in the South East Asian region
- Focused energy optimization projects in the TAK and Rayong plants
Established on April 10, 1981, Padaeng Industry Public Company Limited is listed on the Stock Exchange of Thailand in the Resources Sector (Mining). The Company is the sole producer of high quality zinc in South East Asia, with an annual production capacity of 110,000 tonnes of zinc metal and alloy.