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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events