Annual Report 2011 - Berli Jucker Public Company Limited
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International Business Group & Others The year 2011 was yet another successful one for our international business with respect to regional expansion as we continued to strengthen our foothold in Vietnam and Myanmar in addition to the establishment of our regional operations in Cambodia. After more than a decade of building the market, through import of Cellox products from Thailand, the Company has realized the potential growth of the Vietnamese tissue paper market. Consequently, the Company has invested in a converting plant with a first-year production capacity of 2,000 MT, and with the potential of expanding to 5,500 MT of finished goods by 2020. The factory started its commercial operation in September 2011. On February 24, 2011, TBC - Ball Beverage Can Vietnam Ltd., a joint venture between Thai Beverage Can Ltd. and Ball Corporation, was granted a certificate of investment to operate aluminum can manufacture. The factory is located in the Vietnam-Singapore Industrial Park 2 in Binh Duong Province on an 80,000 square meter plot of land with the investment of USD 60 million and a production capacity of 850 million cans per year. During the construction period, TBC - Ball Beverage Can Vietnam Ltd. is selling imported cans to its multi-national customers through BJC International (Vietnam) Ltd. The factory is scheduled to commence commercial operation in the early part of the second quarter 2012. The construction of O-I BJC Vietnam Glass Ltd. (Malaya Vietnam Glass Ltd.)’s new factory in Ba Ria Vung Tau Province was completed in October 2011 and production began with full capacity at 260 MT per day. The opening ceremony was held in February 2012. In the trading business, Thai Corp International (Vietnam) Co., Ltd. significantly expanded adding new principals including F&N (Nestle products), Thai President Foods (Mama), Thai Beverage (alcohol drinks and whisky products), Bireley (juice drink products); and existing principals Red Bull, Royal Foods (Three Lady Cooks canned fish), Diary Plus (Dutch Mill products) and BJC’s products (Cellox, Zilk and specialty products). In 2011 annual sales volume increased by nearly THB 1 billion and the sales network was further expanded to cover northern Vietnam and thus the entire Vietnamese market. In Myanmar, International Business Group is planning aggressive moves aimed at gaining a pioneer position in various industries. In 2011, the Company strengthened the office operations at Berli Jucker (Myanmar) Ltd. to be ready for the opportunities in the newly opening market. As the country is still in the early stage of economic development, the Company has taken a further step in the market through exporting aluminum can, glass container and fertilizer products in order to capture the higher domestic consumption and explore opportunities for forward and backward integration in the near future. The opening of our Business Development Division in Phnom Penh is another milestone for BJC in Cambodia. This unit focuses on trading expansion, including the fields of cooking palm oil and raw materials for glass production, as well as facilitating BJC’s supply chains to ensure the establishment of the Company’s foothold with the most reliable supply and the highest quality of products and services in the years to come.
The opening ceremony of O-I BJC Vietnam Glass Ltd’s factory at Ba Ria Vung Tau, Vietnam by Mr. Tran Minh Sanh, Chairman of People’s Committee of Ba Ria Vung Tau Province, Mr. Charoen Sirivadhanabhakdi, Chairman of Berli Jucker Public Company Limited and Mr. Al Stroucken, Chairman and CEO of Owens-Illinois Inc. TBC-Ball Beverage Can (Vietnam) Limited under construction. Expected completion by second quarter of 2012.