Bangkok--5 Jun--Worklink PR
Dr. Pawat Vitoorapakorn, CEO of Eastern Polymer Group Pcl., World Class Innovative Polymer and Plastic products Manufacturerannounced the business plan for 2019/ 2020 (April 19 – March 20) with the revenue growth target of 10% through the continuous implementation of "The New S-Curve" strategy. As for the operational strategy, it focuses on innovative product development and manufacturing technology development to reduce cost and increase production efficiency, manufacturing of products which response to the market's demand, as well as cost management with procurement of quality raw material of reasonable prices from sources around the world. This will strengthen the Brand Value and promote domestic and international marketing as well as building "innovative people" together with encouraging continuous learning. In addition, the strategy to establish growth still places an emphasis upon creating trading network with the world's group of companies through product exporting, certification granting, franchise building, business alliance building, joint-venture, oversea production base building, and business acquisition, etc.
The direction of EPG's core businesses is as follows:
The Thermal insulation business under the brand AEROFLEX invested in the new Factory which shall start its operation in Q3 18/19 by adding 2,000 tons/ year in the first phase to produce the roof insulation product, AERO-ROOF, and other small tubes. The expansion will cover all regions of Asia. In Addition, AEROFLEX will gradual invest in the automation production technology in The US while continue to improve of the logistic system to enhance efficiency in transportation and services. The revenue from the US is the crucial part of Company and AEROFLEX, the company foresee growth opportunity within the US due to the demand of insulation products used in office buildings, industrial factories, fast food chain restaurant Superstores and residences, etc.
The automotive accessories business under the brand AEROKLAS, the company continue to work closely with automotive manufacturers by focusing on innovative product development for existing products while research and develop for new product. Recently, the brand has launched Roller lid to the market. Thus AEROKLAS is expected ongoing growth. In addition, this year marks the 5th year after the acquisition of the business of TJM Products Pty. Ltd (TJM) in Australia. In the past years, the company performed improvement in many aspects such as restructuring the business, building 3 corporate stores and implementing the Supplier Partner Program (SPP), etc.
For the next step, the Company shall accelerate to create synergy among all groups of businesses of AEROKLAS by 1) utilizing customer base expansion and full service coverage which shall increase customer base 2) establishing appropriate pricing and 3) reducing operation cost by relocating partial product assembly line in Australia to Aeroklas's new facilities in Thailand which expected to start the operation during Q3 18/19 to enhance total efficiency.
The plastic and packaging business under the brand EPP has implement "Capacities Driven" in the past year to increase production efficiency, has yield positive result for EPP by increasing the portion in industrial made to order that require high standard product. EPP has been certified by international standards such as GMP, HACCP, and The British Retail Consortium (BRC) – the food safety standard of UK, etc. Moreover, The EPP aim to continue the marketing in Food and beverage plastic and packaging with expectation to expands to neighboring countries where the product demand increasingly grows. Regarding the environmental concern, EPP can interchange its raw material to bioplastic due to availability of technology and manufacturing machinery with minor investment. Moreover, the Company has a plan to invest in production line expansion of paper packaging production to provide integrated packaging services.
Dr. Pawat added that the trade war between The People's Republic of China and The United State of America had no direct impact to company in the short term. However, the Company's business in The US was expected to grow as planned. On the other hand, the business in The People's Republic of China, particularly the joint-venture company, might confront the country's unfavorable economic situation and severely strict environmental standard. However, the joint-venture business had a good reputation and was well accepted in The People's Republic of China, it had a good potential of competitiveness.
On May 27, 2019, the Company reported the Stock Exchange of Thailand of the establishment of the new joint-venture company in The People's Republic of China to produce and distribute automobile accessory products for OEM and ODM and general individual customers. A subsidiary of Aeroklas (Shanghai) Co., Ltd. ("Aeroklas-SH") in The People's Republic of China had an intention to join with Sailing Technology Co., Ltd. in The People's Republic of China with Aeroklas-SH's shareholding of 49% and 51% of shareholding went toSailing Technology Co., Ltd. in the registered capital of the new company. The joint-venture is specialized in manufacturing and marketing inThe People's Republic of China which can help increase customer base expansion. In addition, the plants' locations of the joint-venture in other cities can replace the existing location of Aeroklas-SH's plant in Shanghai to reduce operation cost. This commercial commencement of operation is expected to be within the beginning of 2020.
Eastern Polymer Group Pcl., or EPG is a holding company with the main businesses consisting of heat/ cold insulator under the brand AEROFLEX, automobile accessories under the brand AEROKLAS, and food and beverage packaging under the brand EPP. The 3 businesses have success and growth with creative innovation, being the leader in local and oversea market, as well as having factories and distribution networks covering more than 100 countries worldwide.