STGT Spends ฿700Mn for the Capacity Expansion of Glove Production of Surat Thani 2-3

Sri Trang Gloves (Thailand) Public Company Limited (STGT) announced that the Board of Directors’ Meeting held on August 25, 2020 has unanimously passed the resolution of related party transactions as follows:

 

1) Approved the Engagement of Premier System Engineering Company Limited (PSE) as a Contractor for the Production and Installation of Machines and Equipment for the Capacity Expansion of Surat Thani 2 and 3 with a period of works of 1 year after the signing of service agreement and total transaction value not exceeding 600,000,000 baht.

 

STGT has entered a service agreement with PSE as a contractor for the production and installation of machines & equipment for the expansion of latex glove production in Surat Thani 2 and 3. 

 

In addition, STGT and PSE have the same major shareholder, Sri Trang Agro-Industry Public Company Limited (STA), which direct and indirect owns STGT’s shares in a proportion of 56.18% and STA also direct and indirect owns PSE’s shares in proportion of 99.99%.

 

2) Approved the Land Acquisition from the Company’s Director and Related Persons with a total area of 205 rai 3 ngan 47.5 square wah under purchasing value of 94.70 million baht for the purpose of the construction of latex gloves factory in Tumbol Samnak Kham, Amphur Sadao, Songkhla under the capacity expansion of the company.

 

As of 11:51 local time in Thailand, the share price of Sri Trang Agro-Industry Public Company Limited (STA) rose ฿0.75/share or 2.94% to ฿26.25/share with a trading value of 93 million baht, meanwhile STGT increased ฿3.75/share or 5.54% to ฿71.50/share with a trading value of 953 million baht.