Bangkok Glass Co is diversifying into floating glass products in order to avert a slowdown in the glass package market, which is nearing saturation.
President Pavin Bhirombhakdi said Bangkok Glass is looking to develop high-value-added floating glass products such as glass building materials, printing glass, solar panels and speciality glass.
The project is expected to be completed after its new 5-billion-baht floating glass production facility in Prachin Buri starts commercial operations in the third quarter of this year, with a production capacity of 219,000 tonnes per year.
"We expect that within five years our revenue from floating glass will share nearly 40% of total revenue," Mr Pavin said.
"In contrast, glass packaging will generate a smaller proportion, around 50%, down from the current 85%."
Last year, Bangkok Glass partnered with Swiss-based Glas Troesch Holding AG, a specialist in high-value-added floating glass, to obtain the technological transfer necessary to make this move.
"Packaged products may no longer be the focus of our business that generates big revenue in the future," Mr Pavin said.
"In contrast, plastic, PET packaging and paper packaging face stiff competition, which makes floating glass the best solution for our business."
Bangkok Glass contributed around 8% of its total revenue to the Boon Rawd Brewery.
After the floating glass production commences, Bangkok Glass expects the contribution to increase to 13%.
A subsidiary of Singha Corporation, Boon Rawd and Bangkok Glass have an offtake agreement that provides for almost 50% of the beverage package.
The beer market is also seen as a saturated business, where demand has fallen due to the anti-alcohol campaigns, while competition among players intensifies.
Sales volume of Bangkok Glass dropped to 890,000 tonnes last year, down from 980,000 tonnes over the past few years.
The sales are expected to be smaller in the coming years, he said.
Bangkok Glass expected sales to grow 12% to 14 billion baht this year.
Mr Pavin said before launching its plans for floating glass production, Bangkok Glass readjusted it administration and business into four main units, container glass, floating glass, packaging and other.