Thailand: Tipco to spend THB 1.5bn in 2015 for increasing production capacity
First publishedon www.AggBusiness.com
Thailand-based asphalt manufacturer Tipco Asphalt is anticipating an increase in asphalt demand from construction companies between April and August 2015 due to the government's acceleration in plans for the construction of new roads and repairing of old ones across Thailand.
The government is yet to disburse about THB 70 billion (€1.99 billion/US$2.15 billion) of the earlier road-building budget and has reserved another THB 40 billion (€1.13 billion/$1.23 billion) in 2015.
With these projects, total monthly asphalt demand may increase from 40,000tonnes to 60,000tonnes.
To meet demand, Tipco has reserved THB 1.5 billion in 2015 for improving logistics and increasing production capacity.
The company is planning to improve the IT system at its factory, relocate the Surat Thani province asphalt depot for reducing logistics costs and buy ten asphalt trucks.
The company expects a 30% increase in domestic sales in 2015 as compared to a 20% increase in 2014. It expects a 10% year-on-year rise in sales volume to a record-high of 2.2 million tonnes. It expects THB 1.5 billion net profit in 2015 as compared to a 44% year-on-year increase to THB 1.2 billion net profit recorded in 2014.