Polyplex targets record B10bn in sales revenue

PLASTIC FILM
YUTHANA PRAIWAN

Polyplex (Thailand) Plc (PTL) expects to end its fiscal year with revenue growth of at least 40% thanks to strong demand for plastic film products, especially from China and India.

The SET-listed film producer is forecasting record-high revenue of at least 10 billion baht in the year to March 31,up from 7.12 billion baht a year earlier.

The company's sales have been growing steadily, from 3.3 billion baht in 2005, along with the increasing demand for both thin and thick film in line with global market.

"Over the past few years demand has continued to grow despite the economic crisis in 2008 and 2009, which led to the closing of several old production lines in Europe and the US," said commercial chief Vinod Sureka.

The company currently operates three production bases in India, Thailand ad Turkey, supplying the global market,with production capacity of 196,999 tonnes per year.

It is investing $19.44 million to expand the capacity of its Thai plant by mid-2011 and $79 million to expand its Turkish facilities by the first quarter of 2012.

The expansions, once completed,would raise the company's total film production capacity to 231,000 tonnes per year. Its capacity utilisation exceeds 80% in both countries now.

"We are now focusing on value-added products such as chemically coated film,metallised film and thermal laminated film, which can fetch double the price of plain film," said Mr Sureka.

"According to our capacity expansion plan, the company will add high-value films such as products for graphic arts and medical liners in Thailand ad metallised films in the Turkey facility."

PTL reported total revenues for the first half of its fiscal year (April to September) of 4.67 billion baht, a rise of 31% from the same period last year,with profit after tax rising 172% to 1.17 billion baht.

High-value films represented 42% of the company's sales revenues, up from 37-38% in 2008 and 2009.

The company expects global film industry demand in calendar year 2011 will rise to 1.97 metric tonnes from 1.81 million this year.

PTL is the world's third largest maker of thin PET films, with an 8% market share or 151,000 tonnes a year, after Toray Plastics and DuPont. Polyplex Corp in India is the parent firm of PTL.

PTL shares closed yesterday on the Stock Exchange of Thailand at 38.50 baht,down 1.75, in trade worth 1.75 billion baht.

BANGKOK POST
4 December 2010