NEO Invests 2,464 million Baht in Building the "Factory of the Future" in Partnership with Ritta and Metric Boosting Production Capacity and Standards to Meet Surging FMCG Demand

Mr. Suthidej Thakolsri, Chief Executive Officer of Neo Corporate Public Company Limited and Neo Factory Company Limited, stated, "NEO is dedicated to leading innovation in the Thai and Asian FMCG market by developing products that cater to evolving consumer behavior. This factory expansion marks a crucial step in enhancing our production capabilities under the 'Efficient Supply Chain' strategy, bolstering our competitiveness and supporting future business growth. We have allocated approximately 2,464 million baht for the expansion of our household product factory for both adults and children. This investment will focus on developing Household Products and expanding production capacity for Fabric Care, Home Cleaning, and Baby & Kids product lines to align with market growth. All operations will adhere to quality and safety standards and ESG principles to ensure sustainability for our business, society, and the environment."

Mr. Panitan Tepnikorn, Co-Chief Executive Officer of Ritta Company Limited, added, "Our collaboration with NEO and Metric on this project leverages Ritta's engineering and construction expertise to develop a factory equipped with modern production systems, robust supply chain management, and specialized production technologies. Our focus is on maximizing efficiency to meet NEO's needs for increasing production capacity, achieving sustainable growth objectives, and strengthening the Thai FMCG industry."

Mr. Narongrit Kusonmanin, Managing Director of Metric Consulting Engineers & Architects Company Limited, stated, "Metric is proud to be a part of this project. We are applying our specialized knowledge in engineering and architecture, particularly in energy-efficient building design and BIM technology, to design and construct a modern, environmentally friendly factory that meets international standards. This facility will serve as a model factory, integrating innovation and sustainability to support NEO's long-term growth."

The factory expansion project will span 36 months, divided into two phases. Phase one, commencing in February 2025, will be located at NEO's existing factory site in Lam Luk Ka District, Pathum Thani Province. It will encompass over 71,307 square meters on more than 16 rai of land and is expected to be operational by November 2026. Phase two will begin in October 2026 and is projected to be operational by April 2028. The total investment for design and construction is approximately 2,464 million baht. This expansion is anticipated to increase production capacity for Household Products, including Baby & Kids items, to at least 359,086 tons per year, a 67% increase from the current 215,318 tons. The two-phase approach will also mitigate financial strain and positively impact the company's overall financial performance.

This investment will fuel revenue growth and incorporate advanced production technologies, such as Mixing Machines, to enhance efficiency, reduce waste, and conserve energy. Environmentally friendly energy and water management systems are also integral to the project. These initiatives align with ISO 14001 certification, the Green Industry accreditation from the Department of Industrial Works, and the Eco Factory standard from the Federation of Thai Industries. Furthermore, the project will contribute to both direct and indirect economic growth in the region, creating jobs in construction and factory operations, while stimulating the local economy.