BANGKOK (Nov. 16, 1:10 p.m. ET) — Polyplex (Thailand) Public Co Ltd is investing US$13.2 million (CNY83.82 million) on a second thermal lamination film line at its Rayong facility in southern Thailand.
The line, with designed capacity of 215 million square meters per year, would commence commercial production from April 2013. The output would be for exports to markets in the United States and Europe.
The second line reinforces Polyplex strategy of integrated manufacturing, according to a spokesman. He said Polyplex expects the film market to be more competitive, and investing in value-added products will help improve margins.
Polyplex's first line, with capacity is 120 million square meters per year, started in 2007-08.
“Over the last three years, the company has been able to ramp up the sale volumes and believes that further investment in this segment would help the company to grow profitably,” the spokesman said.
Meanwhile, weak PET film prices brought down net profit 19 percent in the six months ended Sept. 30 to Baht954.63 million (US$30.94 million).
The big loss came in the second quarter, when net profit declined by 67 percent to Bt251.1 million (US$8.14 million).
The price correction impact was also felt on the second quarter sales, which declined 6.54 percent to Bt2.38 billion (US$77.15 million). Likewise, the company's first have sales were down 5.28 percent to Bt2.43 billion (US$78.77 million).