King Pac Industrial Co. Ltd. has lined up a major expansion aimed at making the company one of the top plastic bag makers in the world. An executive with the Laem Chabang, Thailand-based firm said the project will take a few years to complete, and will depend on raising financing.
We have an expansion plan for the next five to 10 years, said Pattida Julasaksrisakul, assistant managing director at the family-owned company.
KPI plans to boost capacity to 476 million pounds of polyethylene bags per year, up from the current level of 211 million pounds per year. The firm expects to invest $88.2 million in the project.
KPI also is carrying out due diligence to procure a listing on the Stock Exchange of Thailand by the end of 2011, Pattida said. But this would widely depend on the stock market sentiment, she added, pointing out that a public offering would provide a good source of investment funds.
Just last year, KPI invested $44.1 million to double its capacity. The project included an extrusion line and a cutting line, and now the firm is installing a transparent food-wrapper line.
Pattida said the long-term investment could include manufacturing polyethylene for in-house use, but that would also depend on the capacity expansion's progress.
KPI, capitalized at $5.88 million by the Julasaksrisakul family, plans to build a 316-acre industrial park for plastics companies near Chonburi, a port city on the Gulf of Thailand. It aims to lease about 60 percent of the space to other plastic product makers.
A quick change in marketing strategy due to the global economic crisis has helped the company achieve sales of $132.3 million last year. The company said it shifted resources to the domestic market, and now about 35 percent of its sales are to customers in Thailand.
Pattida has set a goal of 10-15 percent sales growth this year. He added that the company sets aside 1 percent of its sales for research and development.
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