SET-listed TPBI Plc, a plastic packaging maker, has signed a memorandum of understanding (MoU) with a local partner in Myanmar to build a factory there to serve export demand.
Chief finance officer Kamol Borrisuttanakul said TPBI signed an MoU with Myanmar Start Group to start a feasibility study to expand plastic packaging business in Myanmar and produce environmentally-friendly plastic packaging.
He said the study would cover machinery that matches Myanmar's production facilities, tax system and business regulations, and the possibility of finding partners to start or expand production facilities in the country.
"This MoU will enhance our ability to work together with our partner to analyse business opportunities, production costs and plastic packaging trends in Myanmar and look into the possibility of creating a production base to export to other countries across the world," he said. The study is due to be completed by March.
This is TPBI's latest bid to bolster revenue this year. The company expects to see total revenue in 2017 grow by 5-10%, thanks to rising demand for special plastic packaging for the delivery of e-commerce products as online retail grows.
The company has set aside 20-30 million baht to upgrade the efficiency of its machines to produce more special-grade plastic for packaging. The project is expected to be completed and begin commercial operations by the first quarter.
TPBI also expects to start producing bioplastics and sell them to major customers by the end of the year.
Apart from adjusting its products, TPBI is also undergoing a manufacturing upgrade by adopting more robotic arms and increasing automation for its production lines and warehouses to streamline the production process, reducing the workforce and ultimately cutting labour costs.
TPBI posted a net profit of 97.3 million baht in the third quarter of 2016, up from 89.2 million year-on-year. For the first nine months of 2016, it had a net profit of 277 million baht, compared with 261 million in the same period in 2015.
TPBI shares closed on Thursday on the SET at 15.50 baht, up 70 satang, in trade worth 87.6 million baht.