BG Packaging plans to expand its production of flexible plastics, biodegradable packaging and kraft paper for the food and beverage sectors to serve demand both domestically and abroad.
Vorawat Buranakarn, managing director, said the company is studying the feasibility of these three projects and plans to decide on the details in 2020.
"These will be new investments," he said.
Mr Vorawat said BG Packaging is seeking partners to form joint ventures for these three projects, saying it is in talks with local sugar producers.
"Sugar companies can supply bagasse from sugar cane to make biodegradable packaging," he said.
The company allocated 1 billion baht for investment over three years (2019-21), including these three projects.
BG Packaging runs four plants in two provinces -- Ayutthaya and Pathum Thani -- producing crown caps, plastic closures, PET bottles, crate containers and corrugated cartons.
BG Packaging is a subsidiary of Bangkok Glass, the glass packaging producer.
For Bangkok Glass, Boon Rawd Brewery is a major shareholder.
In 2019, BG Packaging expects sales revenue to grow 4% to 1.8 billion baht, attributed to packaging demand for e-commerce, food and beverage, and electronics.
Paper packaging is expected to contribute 800 million baht this year, while PET bottles and plastic closures account for 700 million, with crown caps making up the remainder.
BG Packaging posted sales from Laos and the Philippines of 30 million baht in the first quarter.
Mr Vorawat said the company plans to seek beverage producers in Cambodia, Myanmar and Vietnam to supply crown caps and plastic closures.
At home, BG Packaging supplies Boon Rawd Brewery, which accounts for 50% of total sales revenue.
The other 50% comes from other beverage producers in the country.
He said BG Packaging plans to reduce its product share to Boon Rawd Brewery to around 35-40% because the company is restructuring management organisation.
"Although Boon Rawd Brewery is the major shareholder of Bangkok Glass, we aim for each subsidiary to grow business by itself," said Mr Vorawat.
BG Packaging contributes 10% to Bangkok Glass, and the former is projecting 18 billion baht in revenue for 2019.
