Bangkok--Aug 29--Siam PR. Consultant
Stronger economy and positive future outlook for Thailand and the ASEAN have made BPB - global leader in gypsum products - confident in pressing further investment in the region, following huge in vestment in Thai Gypsum Products Pcl. (TGP) and China, said BPB Group CEO Richard J. Cousins during his visit to the Kingdom.
"Thailand's economic recovery, although slow, is firming up and looking stronger," said Mr. Cousins. "However, there are still areas of fragility with a number of projects still paused due to lack of funds."
The positive economic outlook and abundant gypsum source had encouraged BPB to focus its investment on Thailand, he said, adding that the company had launched a major capacity and efficiency investment in the plaster plant in Bang Pa-in to support increased regional distribution of industrial plaster with significant substitute of current imports from Europe. "Our gypsum board plant in Laem Chabang is undertaking a major operational efficiency improvement program, which is also supported by capital investment from BPB," he explained.
BPB has recently invested up to 33 million pounds (US$48 million) to acquire a stake of 70.7% in Thai Gypsum Products Pcl. (TGP) - leading gypsum company in South East Asia - and increase its shareholding in Shanghai Orient Gypsum Co., Ltd. (SOG) to 84.5%. TGP is one of the leading gypsum companies in South East Asia. It has a share of around 50% of the Thai domestic market, with a plaster board production capacity of 50 million square meters, including a modern 35 million square meter plant near the port of Laem Chabang, east of Bangkok.
"Our immediate focus is to make a success of the Thai Gypsum Products acquisition and the early signs are indeed encouraging. Our current plan is aimed at improving the performance of TGP, which in itself is already justifying further investment in the business," said Mr. Cousins. BPB Group CEO is here in Thailand to gain a first hand understanding of the business, meet the people, review progress of BPB investment and review the future plan.
Mr. Cousins believed Thailand could be the center for gypsum product for the region mainly due to its strategic location, high quality gypsum deposits and growth opportunity in the domestic market due to immature consumption of gypsum board. "The Thai market, also others in the region, is still largely undeveloped so far as gypsum products are concerned. Mature markets consume between 10 to 40 times the level of usage of gypsum boards as compared to Thailand," Mr. Cousins disclosed.
Gypsum boards are used a perfect solution for modern construction as to facilitate reduced energy consumption, better sound insulation to improve living comfort, flexibility of space division to accommodate changing family circumstances. The materials also provide high quality external finishes without requiring high levels of skill. "Expansion in Thailand will come from economic recovery and market development far beyond this," he said.
Mr. Cousins pointed out that TGP would be the key to BPB's stronghold in the Kingdom and the rest of the region as it was an intrinsically strong company and vertically integrated with ownership of high quality gypsum and modern, well-located plant in Laem Chabang for distribution throughout the Southeast Asia region.
He stressed that key elements of BPB strategy in taking the business forward included the following;
1. Market development:
In developed markets per capita usage is at least 3 square meters per annum with North America at 10 per capita usage. Thailand and South East Asia is less than 0.5, which is why the growth prospect is huge.
2. Complementary products and added value products and system:
Introduce new products and systems to present total solutions for specifiers and developers and offer TGP dealers and installers additional sales and margin opportunity.
3. Process efficiency improvement:
Through BPB benchmarking and sharing of best practice across its 90 plus manufacturing units worldwide, TGP is raising product quality levels and driving improvements in process efficiency.
4. Best customer service:
We are striving to be the best in terms of product range, product quality, reliability of delivery, quality of after sales service and technical advice and support.
5. Lowest cost producer
TGP is achieving significant cost reduction primarily through increased productivity and lower raw material costs.
Mr. Cousins also believed it was the Thai managers in TGP that would take the business forward as BPB has a lean senior executive team in Thailand giving the business its strategic direction. "We are impressed by the ability of Thai managers to learn, adapt and apply new knowledge to lead business performance improvement," he said.
For more information please contact;
Jidapa Pramualsub, Benjamaporn Bumraprak
Siam PR. Consultant Co.,Ltd.
Tel.693 7835-8, 01-817 7153, 01-6138426 End.
-AN-
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