TOA to establish three more overseas plants in Asean leadership drive

TOA Paint (Thailand) plans to set up three additional production plants overseas – in Indonesia, Myanmar and Cambodia – as it aims to become the leading player in Asean paint and coatings markets.

The factories in Indonesia and in Myanmar are already under construction, while the Cambodian plant is at the project-feasibility phase, chief executive officer Jatuphat Tangkaravakoon said on Tuesday.

The estimated combined investment for the three plants is Bt1.184 billion.

The one in Indonesia will be its first production facility in that country, while in Myanmar the company’s current production plant is being relocated from Yangon to the Thilawa Special Economic Zone.

The three new manufacturing plants are expected to commence commercial operations in the second, third and fourth quarters of 2018, respectively.

Once construction of these plants is completed and the planned shutdown of the Yangon plant is completed, which is expected to be at the beginning of 2019, TOA’s total production capacity should increase to 102.5 million gallons ( litres) annually, from the currently level of 88 million gallons, excluding TOA Skim Coat (Cambodia).

The company has eight production plants in six countries: three in Thailand, and one each in Vietnam, Laos, Malaysia, Myanmar and Cambodia.

“Completion of the construction and commencement of commercial operations of the three new production plants will help us achieve the target to increase our market share in the paint and coating markets in overseas countries, especially the Indonesian market, which TOA entered five or six years ago.

“Indonesia is regarded as a large market with high growth potential due to the population of more than 250 million. It is also an opportunity to enhance our sales of premium paint and coating products. The Myanmar and Cambodian markets also have high growth potential due to their positive economic growth and high levels of foreign investment,” Jatuphat said.

Meanwhile, the leading manufacturer of decorative paint and coating products in Thailand traded its shares on the Stock Exchange of Thailand for the first time on Tuesday.

The company’s CEO expressed confidence that the shares would attract investors who believe in TOA’s fundamentals and potential to expand its business both at the domestic level and internationally – just as it had attracted institutional and retail investors during the initial public offering of 507.6 million shares issued by TOA and its existing shareholder at the price of Bt24 per share, with a par value of Bt1 apiece.

TOA is the largest retail decorative paint and coating manufacturer in Thailand based on sales revenue. According to Frost & Sullivan, TOA last year had a roughly 48.7-per-cent market share in Thailand, and around 13 per cent of the Asean Economic Community market.

Source : The Nation

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