Thailand bag maker DPAC setting up plant in Myanmar

By Gurdip Singh
Correspondent

Published: April 5, 2013 12:30 pm ET
Updated: April 5, 2013 12:32 pm ET

BANGKOK — Thailand's DPAC International Corp. plans to set up a plastics bag manufacturing facility in Yangon, Myanmar. Some 50 percent of the plant’s out put will be exported — mostly to Japan.

“The Myanmar market potential is also huge,” Methee Athichiskul, DPAC's deputy managing director, told Plastics News.

DPAC's strategy to set up production facility in Yangon is to take advantage of the hardworking labor, albeit its competitive wages compared to those in Thailand, he conceded.

DPAC's sales in Myanmar has grown to 50 million baht (US$1.7 million) per month from the nominal 600 baht per month ($20.5) when the company began marketing its bags there three years ago.

The Yangon factory, set to be a joint venture with Yangon-based business group, is expected to cost $5 million for initial phase development with output of 350 metric tons per month. It will be operational within a few years.

Raw material for the plant would be imported from the Middle East and Thailand.

“We expect first year sales of 300 tonnes per month in Myanmar,” he added. Second year sales are expected to reach 450 tonnes per month.

DPAC is currently a major exporter of plastics bags to Myanmar.

Within five years, output from the Yangon plant will reach 1,000 tonnes per month, he said.

“We will also upgrade our Thai production facilities, relocate some of the existing machines to the Yangon plant,” he said.

“Our longer-term plans include a plastics bag manufacturing facility in Laos and a marketing office in Cambodia,” Methee said.

Though Laos facility was still in the early stages of planning, Methee said it would export 90 percent of the production to the market in northeastern Thailand.

DPAC, a subsidiary of King Pac Group, is seeking listing on the Stock Exchange of Thailand.

Both DPAC and King Pac were expecting a combined sales of 1.45 billion baht ($49.5 million) this year, up on 1.06 billion baht ($36.16 million) estimated in 2012.


Comments

Thailand bag maker DPAC setting up plant in Myanmar

By Gurdip Singh
Correspondent

Published: April 5, 2013 12:30 pm ET
Updated: April 5, 2013 12:32 pm ET

Post Your Comments


Back to story

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events