EPG Aims to Reach ฿11Bn in 2021/22 Income with Plan to Boost Growth via Oversea Expansion

Dr. Pawat Vitoorapakorn, Chief Executive Officer of the Eastern Polymer Group Plc. (EPG), the world’s leading manufacturer and distributor of polymer and plastic products, discloses the company’s operating results of FY2020/21 (ending on March 31, 2021) with a profit growth of 1,221.2 million baht, partly contributed by the implementation its cost reduction policy in all operations and work efficiency enhancement guidelines or USE (U = Utilization of existing resources, S = Save costs, and E = Efficiency enhancement), as well as improved liquidity and financial status maintenance, including cash flow management to reduce the negative global economic impact caused by the Covid-19 pandemic.

For the FY2021/22 (ending on March 31, 2022) the company has set the combined sales target at 11,000 million baht, which is higher than the sales figure prior to the pandemic. The company also raises the gross margin range to 29-32%. The business plan for this fiscal year focuses on the implementation of the 3 following aspects: 

1) To strengthen the company’s continuous growth by using its state-of-the-art technology and innovation processes to create products for the ‘new normal’ lifestyle, while also enhancing production efficiency under the “Capacities Driven” strategy;

2) To expand oversea markets in accordance with increased capacity, which should result in a higher global market share;

3) To strictly follow the  “USE”  policy in order to reduce costs and to maintain increased work efficiency.

EPG’s 3 business groups consist of:

The thermal insulation business, under the brand AEROFLEX, provides premium grade thermal insulation to local and oversea markets, in particular the USA and Japan. The new production facilities in the USA were installed with high speed automation in mind to help reduce operational costs and to increase production efficiency at the same time. The new factory, which will double Aeroflex USA’s production capacities, is expected to test run the initial production in June 2021. The investment is in line with the USA government’s economic recovery support policy, involving a mega-stimulus plan worth 1.9 trillion US dollars, aimed at stimulating the US economy. This cash injection also helps the labor market to recover and strengthens consumer confidence, so people can spend more money, which will generate more investment from the business sector.  This should also have a positive impact on the construction industry.

The automotive parts and accessories business, under the brand AEROKLAS, is expected to grow in line with the increase in demand in all global automotive industries. Aeroklas is determined to strengthen its business with global automotive partners in Europe, Asia and America and to continue to develop innovative products, while utilizing the company’s strong business channels, such as OEM, ODM and after market, to generate utmost benefits for the company. 

As for its Australian operation, Aeroklas expect continuous growth due to increased Australian demand for light commercial vehicles and SUVs, when compared to the previous year. TJM plans to expand its market share in both Australia and the Asia Pacific region by establishing online distribution channels to facilitate product purchase, improve distribution efficiency and to build synergy within its business group, which has provided outstanding performance throughout the current fiscal year. 

The plastic packaging business, under the brand EPP, still places importance on its “Capacities Driven” strategy to better manage production capacity and to achieve utmost benefits. The marketing strategy continues to focus on plastic packaging products of food containers and drinking cups. Through the support from research and development agencies, EPP was able to create a variety of innovative food packaging to better serve consumers’ increased demand and to adapt to the ‘new normal’ lifestyle, while also being environmentally friendly. 

Dr. Pawat added that the company’s total investment budget for FY2021/22 (ending on March 31, 2022) consists of 540 million baht, of which 175 million will be allocated to Aeroflex as an ongoing investment budget for the construction of its new plant in the USA. Aeroklas 245 million baht and EPP 120 million baht will go to new machines and production line improvement investment. The company also allocates 300 million baht to future M&A and possible joint ventures, in preparation for its business expansion in the future.