Leading melamine maker of Thailand Srithai Superware Plc is pushing up investment in Vietnam, a country with relatively high growth opportunities.
Bangkok Post newspaper quoted the firm’s Chairman and President Sanan Angubolkul as saying that it will splash out 450 million baht (13.64 million USD) this year to expand its business in Vietnam.
Of the total, about 300 million baht is to install new machines to increase production capacity of its PET preform and closure products at its two factories in Ho Chi Minh City and Hanoi.
The remaining 150 million baht will be used to build a new melamine factory in HCM City and install new machines at this factory.
The construction of the new melamine facility is scheduled to start in 1-2 months, with operations commencing in the first quarter of next year.
The new factory will serve the demand from Vietnam’s domestic market.
Upon the completion of the new factory, the company will have four in Vietnam: one is a PET preform and closure factory in Hanoi, another in HCM City and two melamine factories in the southern hub.
With the market facing a host of negative factors, particularly the COVID-19 pandemic, Sanan expects sales to stand at 8.62 billion baht this year, 2.6 percent lower than last year’s 8.84 billion baht.
Despite the huge demand for food and beverage packaging for the delivery channel, the company foresees sales in the first quarter of about 10 million baht lower than its earlier expectation. But the bottom line is likely to improve as the baht weakens from last year’s rate, Sanan said.