BGC allots B2.7bn to ramp up production capacity
Packaging remains a company focus
BG Container Glass (BGC), Thailand’s largest glass container manufacturer by capacity, plans to spend 2.7 billion baht expanding its production capacity in the expectation that its glass and non-glass businesses will increase revenue to offset a 6% drop in pandemic-hit sales.
Capacity at its two glass factories is projected to increase by 12% to 3,935 tonnes a day, up from 3,495 tonnes, to meet growing demand in domestic and overseas markets.
Current production capacity is insufficient, said Silparat Watthanakasetr, chief executive of BGC.
The company wants to increase capacity at its plant in Prachin Buri from 180 tonnes a day to 220 tonnes, and build a second glass-melting furnace at a factory in Ratchaburi, scheduled to be operating by 2023, he said.
BGC’s non-glass businesses include power generation and non-glass packaging.
The company has no plans to expand its renewable energy capacity after taking over a 99-megawatt solar farm in Vietnam, but will focus more on laminated flexible packaging and the pulp business because it wants to expand its business into the food and household segments, said Mr Silparat.
Recently BGC invested 176 million baht in a laminated flexible packaging facility in Ayutthaya. Factory construction is scheduled to start in January 2022 and operations are expected to begin in April 2023.
“The company is seeking new business opportunities and the laminated flexible packaging market in Thailand has the potential to grow,” he said.
Thailand’s packaging market, excluding glass packaging, is valued at 80 billion baht.
BGC also wants to increase its exports to expand its business overseas.
However, during the first half of 2021, the company’s export value decreased by 4.7% year-on-year due to the political conflict in Myanmar that caused buyers to postpone orders.
The company aims to grow its export value by 10% this year as it has focused more on the US market in place of Myanmar.
BGC also expects its revenue from businesses including glass and non-glass packaging to increase by 2-3% to 13 billion baht this year.
The Thai glass packaging market is expected to grow by 3% this year, said Mr Silparat.
“We are positive about our recovery from the Covid-19 impact through business expansion and diversification,” he said. “The new lockdown measures should not affect our business.”