Posted on 26 October 2007

 

Source: Bangkok Post, October 26, 2007

Siam Tinplate Co (STP) plans to invest 1.4 billion baht to increase capacity to serve high growth in the food can industry, according to managing director Hiroyuki Umeoka. The new investment would double the company's combined capacity to 280,000 tonnes annually of tinplate at its plant in the Map Ta Phut Industrial Estate in Rayong.

Construction would begin soon and operations at the new factory would start in July 2009.

The 1.4-billion-baht investment would be funded from local bank loans.

The Thai-Japanese joint venture's shareholders include Sumitomo (28.2%), Metal One (18.4%), Nippon Steel (15.6%), Nittetsu Shoji (7%), Tomiyasu (2.2%) and a Thai investor group (28.5%).

The company believes that the strong growth seen in packaged food over the past few years will continue, particularity for the export sector.

''Food can exports have been progressing, with accompanying growth in tinplate demand, which is now reaching 600,000 tonnes a year, the highest among Asean countries,'' Mr Umeoka said.

To cope with substantial expansion, the industry requires more tinplate, the main raw material of food can production, he added.

All of the company's output would serve domestic food can makers.

Thailand's total tinplate capacity currently stands at 590,000 tonnes a year, with 140,000 tonnes from STP.

Thai Tinplate, one of the two major tinplate makers, accounts for 50% of the market, STP has 30% and the remaining supply is imported.

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