Bangkok--22 Dec--i2C Communications
Expanding throughout 2015, PMTA announced that after Baconco launched its new steam granulation production line early this year, its export volume to the Philippines have jumped more than four times in just one year. It also reported a continuous growth in the leasing out warehouse business, reflecting higher demand than supply and has prompted the management to decide to build more warehouses to secure greater revenue.
Mr Sigmund Stromme, Managing Director of PM Thorsen Holdings Public Company Limited (SET: PMTA), introduced that its 100%-owned subsidiary Baconco has more than doubled its total export volume from 28,627 metric tonnes in 2011 to 80,600 metric tonnes in 2015, and the export segment now accounts for 37% of the total sales. This year has proved to be another good year as the new production line has contributed to Baconco's success in recording a fourfold increase in just one year in the export volume of steam granulation NPK fertilizers to the Philippines, from 8,250 metric tonnes in 2014 to 36,100 metric tonnes in 2015. For the Philippine market, the premium quality is well received, and distributers requesting all bags to be clearly marked "produced by Baconco Vietnam", which farmers recognize as a high quality product.
Despite the prolonged drought in Vietnam, Baconco has maintained its profitability level, as well as its share of premium-grade fertilizer market and the export markets. Moreover, it has won a three-year exclusive distributorship contract with Solvay of Belgium forthe marketing of Solvay's "N-Protect" innovative urea fertiliser products in Vietnam, Laos, Cambodia and a number of African countries, significant revenues from which will be recognized in 2016.
He added that, due to the rising demand for warehouses that meet international standards, Baconco's leasing out warehouse business has grown robustly. All of the company's current 42,300 sqm. warehouse space has been fully occupied by major clients such as OI-BJC, Cargill and CP Group.
Baconco is therefore continuously building more and have currently under construction another 8,200 m2 warehouse, scheduled to be completed in January 2016, and already leased out on completion. This, he said, reflected the current high demand from its customers and has led to Baconco's decision to further expand the leasing out warehouse capacity in 2016.