Bangkok--Oct 20--Siam PR. Consultant
Company confident in local bourse as it plans to seek listing on the SET
Polyplex, manufacturer and distributor of polyester film or also known as PET film, sees market opportunity in becoming a market leader as it is planning to widen its export destinations including Europe (Central Europe, Eastern Europe and Western Europe), Russia and countries within the CIS Block, Middle East and North Africa. The company is also announcing plan to seek listing on the Stock Exchange of Thailand (SET) to mobilize funds needed for purchasing of machinery required in its production expansion scheme.
Mr. Sanjiv Saraf, Managing Director of Polyplex (Thailand) Public Company Limited or PTL, manufacturer and distributor of thin film, disclosed that his company was established on March 26, 2002 to manufacture and distribute PET film, which is high quality product made from PET resin or PET chips. “The product is useful for several purposes namely in flexible packaging production, industrial uses and electrical segment. The company currently receives investment privileges from the Board of Investment (BOI). The company’s parent firm Polyplex Corporation Ltd. (PCL) holds both direct and indirect stakes in PTL and has been operating in the same business in India for 16 years,” he said.
“PTL production site is situated in Siam Eastern Industrial Park in Rayong. The plant currently has total production output of 39,000 tons a year. The company has applied to BOI for necessary approval to upgrade its capacity to 48,000 tons per annum. The company is also in a process of setting up production line for PET resin used as raw material for production of PET film. The PET resin production line will go online shortly with a yearly capacity of 52,500 tons,” he said.
Polyplex group of companies has a distinct advantage in production management, which allows for low production cost, while satisfying consumer demands within PIE industry (Packaging, Industrial and Electrical groups) through strong global distribution network.
PET film is thin, transparent, tough and durable — good insulator with smooth surface and low resistance ideal for withstanding force. The sheet is made with thickness of 9 to 50 microns. It can maintain shape well in different kind of temperatures and withstand moisture, lubricants, various kinds of solvent and gas leaks. It is non-toxic with no mixture of heavy metal and plasticizer, which is not biodegradable. PET film is light and can be re-used. With all these good product qualities, PET film has enjoyed growing popularity in accordance with the growth within the packaging, industrial and electrical businesses, which is expected at 5%-10%.
PET film manufactured by Polyplex is used in various industries namely flexible packaging, metallized film, stamping foil, thermal lamination, electrical & cable insulator, labels and holograms and other significant industries. “The company commands 30% market share in the country but most of its output or about 90% of the output is devoted to export. The company’s international markets include Asia, America and Europe,” he said
PTL aims to become an international producer of PET film through partnership between investors, customers and employees in order to achieve the following goals:
- expanding production capacity to cater to the growing global demands while maintaining low production cost
- improving efficiency in product delivery through focus on production near the customer for convenient and efficient logistics
- reducing risk by spreading customer and production bases geographically
- increasing product variety through technological enhancement. The company is planning to start production of metallizer - PET film with thin metal coating - in order to cater to the demand.
- expanding market coverage gradually, moving further to other markets after being able to meet demands of current customers
With confidence in the firms' strength, PTL is preparing to seek listing on the SET to mobilize funds needed in the expansion of its operation. Siam City Securities Co., Ltd. is appointed as lead underwriter and coordinator for the listing of the company’s share on the SET while Advisory Plus Co., Ltd. is appointed as financial advisor. PTL currently has a paid-up capital of Baht 560 million (common shares), fully paid up, which translate into Baht 560 million common shares at 1 baht par value. The company will conduct its initial public offering (IPO) to float 140-240 million shares or 20%-30% of the paid-up capital after IPO. Its paid-up capital will increase to Baht 700-800 million after the scheme is completed. The proceeds will be used in debt repayment, additional working capital and other capital expenditure for future upgrades of equipment/products.
Mr. Ratien Srimongkol, Chairman of Siam City Security Co., Ltd., as lead underwriter of PTL stock, said Polyplex had become a stronger business group through its business expansion and improvement of cost structure following the establishment of its Thai operation. "With combined production output between PTL and its parent firm, the group shines as the world's 5th largest producer of PET film (excluding magnetic media). Their strength does not only lie on large production capacity and competitive production cost only but also the skills in management, policy concentrating on high potential markets, existing global distribution network, good customer relationship and production expertise. PTL will be another interesting stock for investors as it should be able to be listed on the SET within this year," he concluded.
For more information please contact:
Songkram Kingklang or Jatupon Siridech
Siam PR. Consultant Co., Ltd.
Tel. 0 2693 7835 — 8 ext. 39 or 40
Fax. 0 2693 6919-20 End.