Thai group Srithai Superware eyes Vietnam expansion

VOV.VN - Reports emerged from the Bangkok Post on April 6 quoting President Sanan Angubolkul of Thai group Srithai Superware as saying that his company is prepared to spend THB450 million, equivalent to US$13.64 million, on expanding into Vietnam during this year.

thai group srithai superware eyes vietnam expansion hinh 0
Of the total figure, THB300 million would be used in order to install new machinery in an attempt to increase the production capacity of PET preforms and other products at two factories located in Ho Chi Minh City and Hanoi.

The remaining THB150 million would be injected into building a new melamine factory in Ho Chi Minh City. Construction on the new facility is expected to commence within the next two months and is scheduled to be completed by the first quarter of 2021.

Once completed, the new plant will be capable of meeting the rising demand seen within the domestic market and bring the group’s total number of factories located in the country to four overall.

This would include two plants which produce plastic injection molds and capping products in both Hanoi and Ho Chi Minh City, along with a further two melamine factories situated in Ho Chi Minh City.

Amid the ongoing negative business environment, largely caused by the novel coronavirus, the Thai firm’s representative has stated that the group's sales will be at THB8.62 billion in 2020, a drop of 2.6% from the THB8.84 billion figure recorded last year.

Despite there being strong demand within the food and beverage packaging industry, the group’s sales during the first quarter of the year are predicted to reach THB10 million lower than expected.

In the face of such challenges, however, Angubolkul has pointed out that net profit could be improved due to the Thai Baht having a weaker exchange rate than in 2019.

VOV

Related news