Dr. Phawat Witoorpakorn, CEO of Eastern Polymer Group Public Company Limited (EPG), a leading global manufacturer and distributor of polymer and plastic products, revealed that although the COVID-19 pandemic is easing, the conflict between Russia and Ukraine has slowed the recovery of the global economy due to rising energy and commodity prices, as well as increasing global inflation.

            For EPG, which operates in the global market, this presents a significant challenge. Therefore, to create opportunities for continuous growth, EPG is competitive through innovation, technology, and being a global player. The company has implemented strategies to achieve sustainable growth in fiscal year 65/66 (April 2022 - March 2023), focusing on four key areas:

1)   Achieving organic growth from core businesses with readiness in technology and production capacity to enhance efficiency, creating innovative products that ensure continuity of the New S-Curve, as well as expanding markets both domestically and internationally to increase market share.

2)   Achieving inorganic growth through M&A and joint ventures.

3)   Increasing investment in research and development to create new business groups for the future.

4)   Setting a long-term goal to achieve net zero greenhouse gas emissions by 2042.

            In this fiscal year, EPG aims for sales growth of 12-15% with a gross profit margin of 29-32% from the operations of three business groups:

            The thermal/cold insulation business under the Aeroflex brand aims for sales growth of 10-12% by maintaining market share for premium-grade products both domestically and internationally, particularly in the United States and Japan, while introducing new products that meet safety certification standards. For investment in Aeroflex USA Inc., the company is expanding production capacity by utilizing high-speed automated machinery to reduce production costs, minimize reliance on labor, and enhance production efficiency. Currently, Aeroflex USA Inc. has a production capacity of 8,000 tons per year, allowing it to expand into the Ultra Low Temperature Insulation and Air Ducting system industries.

            Energy consumption is a fundamental factor necessary for business operations, as energy activities generate greenhouse gases. Therefore, Aeroflex has set a long-term goal to achieve net zero greenhouse gas emissions by 2042. In fiscal year 65/66 (April 2022 - March 2023), proactive energy conservation measures have been implemented to enhance energy efficiency within the organization, along with the installation of solar rooftops with a capacity of 4 MW. Additionally, other subsidiaries such as Aeroklas and EPP have also installed solar rooftops, resulting in a total electricity generation capacity of 18 MW and the ability to offset 13,500 tons of CO2 equivalent greenhouse gases, as well as saving approximately 70 million baht in electricity costs per year.

            The automotive parts and accessories business under the Aeroklas brand aims for sales growth of 20-23% by continuing to collaborate with OEM customers from European, Asian, and American automotive manufacturers to continuously develop innovative products. Aeroklas also leverages its strong business channels, including OEM, ODM, and aftermarket customers, to maximize benefits. Furthermore, Aeroklas benefits from the global automotive industry's shift towards electric vehicles, as manufacturers seek high-standard, safe, and lightweight automotive parts.

            The Australian business is expected to continue growing in line with the demand for Light Commercial Vehicles and SUVs in Australia. On April 1, 2022, TJM Products Pty. Ltd. (TJM) in Australia was renamed Aeroklas Asia Pacific Group (AAPG), with plans to restructure the business to enhance collaboration among all brands in Australia in the future.

The plastic packaging business under the EPP brand aims for sales growth of 5-8% by continuing to focus on the "Capacities Driven" strategy to manage production processes for maximum efficiency, as well as marketing in the food packaging segment, including food containers and drinking cups. The company is also working to enhance brand awareness for EPP through online and offline communication, while creating various innovative packaging that meets consumer demands and aligns with the new normal lifestyle.

Additionally, the research and development operations of EPG Innovation Center Co., Ltd. not only support the three core businesses by creating innovative New S-Curve products but also conduct research and development to create innovative products for new business groups in the future.

            Dr. Phawat further stated that during the 4th Board of Directors meeting of 2022 on June 7, 2022, a resolution was approved for Aeroklas Australia Pty. Ltd., a subsidiary of the company, to acquire 4 Way Suspension Products Pty. Ltd. in Australia by purchasing 100% of the shares for a value not exceeding 75 million Australian dollars, or approximately 1,888.3 million baht. 4 Way Suspension Products Pty. Ltd. operates in the production and distribution of automotive accessories in the suspension products category, such as shock absorbers, coil springs, leaf springs, and accessories for pickup trucks under the "Tough Dog" brand. This acquisition will enhance the diversity of the product range, as well as leverage the well-known "Tough Dog" brand for its product quality and increase distribution channels in Australia and abroad, while also creating synergies to reduce costs and increase revenue for the Australian business, in line with the strategic plan for sustainable growth.