Assoc. Prof. Dr. Chalieo Vitoorapakorn, Deputy Chief Executive Officer of Eastern Polymer Group Public Company Limited (EPG)

Aiming for Growth from Core Businesses, with Continuous Development of Innovative Products

Assoc. Prof. Dr. Chalieo Vitoorapakorn, Deputy Chief Executive Officer of Eastern Polymer Group Public Company Limited (EPG), a leading global manufacturer and distributor of polymer and plastic products, revealed that the International Monetary Fund (IMF) forecasts global economic growth of 3.2% in 2024-2025. The global recovery is gradual but stable, differing across regions. Global inflation is expected to continue declining, but there is pressure from rising interest rates, as well as impacts from prolonged geopolitical conflicts.

These factors pose challenges to EPG’s global business operations. In the 2024/2025 fiscal year (April 2024 – March 2025), the company focuses its operations as follows:

1) Achieving Organic Growth: With existing products and new innovative products from all business groups, enabling the company to meet customer demands comprehensively, maintain existing customer bases and expand to new customer groups.

2) Committing to research and development to create innovative products and new S-Curves to support core businesses and establish new business groups in the future.

3) Co-planning and improving operations of joint ventures in South Africa.

4) Using energy efficiently and reducing greenhouse gas emissions.

In the 2023/2024 fiscal year (April 2023 – March 2024), EPG has set a sales growth target of 8-10% and a gross profit margin of 30-33%, driven by operations across 3 business groups as follows:

Insulation Business under the Aeroflex brand targets sales growth of 6-8%, coming from premium grade insulation products marketed domestically, in the United States, and Japan. For products used in Ultra Low Temperature Insulation industrial groups and Air Ducting systems, greater marketing efforts will be made domestically and in the United States. For domestic project customer groups, Aeroflex will benefit from relocating production bases to the EEC and in the United States, major project customer groups include Semiconductor/Cloud/Automotive sectors.

Aeroflex insulation addresses energy efficiency and environmental friendliness, having received carbon footprint certification for its organization and products. As EPG’s pilot business group, it targets achieving Net Zero Emissions by 2042 with concrete supporting plans.

Automotive Parts and Accessories Business under the Aeroklas brand targets sales growth of 10-12%, driven by developing innovative products jointly with OEM automotive customers in Europe, Asia and the United States. With expertise in manufacturing lightweight, durable polymer and plastic automotive parts that can fully substitute metal materials, Aeroklas helps reduce vehicle weight, energy usage and carbon dioxide emissions. Importantly, it meets safety standards, earning automotive brands’ trust to select Aeroklas as the manufacturer of various automotive parts that will be gradually launched this fiscal year. Additionally, Aeroklas has projects to develop innovative products for both ICE and EV vehicles in collaboration with automakers to continuously create new S-Curve products.

For the business in Australia under Aeroklas Asia Pacific Group (AAPG), it remains in the business turnaround phase by strengthening collaboration across businesses and brands in Australia, such as Aeroklas Fitment Center playing a key role in supporting the Fleet and OEM businesses.

Plastic Packaging Business under the EPP brand targets sales growth of 3-5%. EPP aims to expand market share for food packaging and eici plastic packaging brand, certified with various standards like Thai Industrial Standards, GMP, HACCP, BRC and most recently FSC (Forest Stewardship Council), enabling it to be selected by industrial customers as their plastic packaging manufacturer. Last year, EPP improved production efficiency, ready to increase output if plastic packaging orders start recovering.

EPP employs innovative production processes to help reduce manufacturing waste, while offering a diverse range of packaging solutions to comprehensively meet customer needs, including paper packaging and bioplastic packaging.

The joint venture businesses in the insulation and automotive parts/accessories sectors in Thailand, India, and China have grown well in line with their respective industries. For the joint venture in South Africa, the company and other investors have sent in consultants and experts across various fields to closely monitor, participate in problem-solving, and improve operational efficiency.

Assoc. Prof. Dr. Chalieo added that the company has set a total investment budget of 466 million baht for the 2024/2025 fiscal year for product development, additional machinery, and production line improvements. Moreover, the Board of Directors resolved to propose to the 2024 Annual General Meeting of Shareholders to approve an annual dividend payment of 0.10 baht per share to shareholders, totaling 280 million baht. The 2024 AGM is scheduled for July 24, 2024. If approved, the record date for eligible shareholders will be August 2, 2024, and dividend payment will be made on August 21, 2024.

Eastern Polymer Group Public Company Limited (EPG) operates as a holding company, with its primary business being insulation products under the AEROFLEX brand, automotive parts, and accessories under the AEROKLAS brand, and food and beverage packaging under the EPP brand. All three businesses have achieved success and growth through innovative creations, being market leaders both domestically and internationally. The company has factories and distribution networks spanning over 100 countries worldwide.

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