Eastern Polymer Group Plc (EPG), a SET-listed company and Thailand's leading plastic moulder, has allotted 1.1 billion baht to spend on mergers and acquisitions (M&A) and improvement of artificial intelligence (AI) at its manufacturing facilities from 2018-20.
Chalieo Vitoorapakorn, deputy chief executive, said it aims to complete 1-2 M&A deals and start installing AI machinery this year and next.
"The company is in talks with 10 mid-sized and large firms, both local and overseas, about M&A deals. Most firms are related to construction, thermal/cold insulation, plastics for auto parts and food packaging, and all are involved with EPG's competencies," he said.
"Although the M&A deal value will not be high, our strategy is to focus on acquiring businesses that have their own brand, not original equipment manufacturers because they have too much pressure on their manufacturing costs, which affects profit margins."
Mr Chalieo said EPG plans to run an overseas roadshow to attract foreign institutional investors and seek new markets to introduce its products.
EPG will join the SET's Thailand Focus in late August and go to Singapore with JPMorgan in November.
"We believes EPG has been well-received by local investors and it is time to be stronger internationally," said Mr Chalieo.
"EPG expects overseas revenue to reach 70% very soon, from 62%."
EPG, founded by the Vitoorapakorn family in 1978, makes synthetic rubber and plastic for its three core businesses -- the thermal/cold insulation for Aeroflex, the plastics for auto parts under Aeroklas and food packaging under the EPP brand.
Mr Chalieo said EPG expects its revenue for the fiscal year 2017/18 ending March to grow by 8.8% to 10 billion baht, compared with the fiscal year 2016/17 at 9.58 billion.
EPG expects revenue in fiscal year 2018/19 to grow by 10% to more than 10 billion baht thanks to government stimulus measures.
EPG shares closed yesterday on SET at 7.55 baht, down 10 satang, in trade worth 38.3 million baht.
