Bangkok--21 Nov--Bangkok Bank
Bangkok Bank approved a credit line of Baht 2 billion to 'Vanachai Panel' for construction of a new particle board factory in Surat Thani (PB-3 project) to increase its capacity to produce high-quality and environmentally-friendly particle board to meet the needs of customers in its major markets in East Asia and ASEAN.
Bangkok Bank Senior Executive Vice President Chansak Fuangfu said the bank is pleased to support the success of Vanachai Group (VNG), a leader in the production and distribution of environmentally-friendly panels, with a credit line of Baht 2 billion to its subsidiary Vanachai Panel Industries (VPI) for construction of its new particle board factory in Surat Thani (PB-3). The funds will be used to increase annual production capacity by 450,000 cubic meters a year to meet demand from East Asia and ASEAN. Given the good growth of the company, its stable financial status, and long partnership with Bangkok Bank, the bank is ready to fully support VNG in its international expansion.
VPI Managing Director Wanthana Jaroennawarat said that the company is grateful and proud to receive funding support from Bangkok Bank, which will enable it to construct a new particle board factory (PB-3 Project) with production capacity of 450,000 cubic meters a year on a 87 rai area in Wiang Sa District, Surat Thani province. This new factory will produce high-quality particle boards 4-feet wide, under a modern and efficient production process using continuous pressure plates and high-speed compression. This will allow the company to control its production to meet the need in East Asia and ASEAN for high-quality products. The company's main export markets are South Korea, China, India, Taiwan, Malaysia and Vietnam.
With the Baht 2 billion investment, the company aims to complete construction and start commercial production within Q2/2019. The investment will enable the company to double its annual particle board production capacity from 450,000 cubic meters to 900,000 cubic meters a year using an efficient and environmentally-friendly production process.
VNG has been listed on the Stock Exchange of Thailand since 1995 with registered capital of Baht 1.56701 billion. It sells environmentally-friendly panel boards, with its main products MDF boards, particle boards and melamine-laminated MDF boards.