Ocean Glass to double annual stemware production capacity

Ocean Glass Plc (OGC), a major listed glassware manufacturer, plans to double its annual stemware production capacity this year to 20 million pieces.

According to managing director Supawan Kanyaprasith, the company will spend 640 million baht to boost its production capacity for stemware and tumblers.The capacity expansion project will take two years to be completed. The company will use net profit to finance the expansion.

OGC has been running its stemware production line at full capacity, which annually amounts to 9-10 million pieces, for three years.

``This year is the right time to increase production capacity to 17-20 million pieces per year to serve overwhelming demand,'' said Mrs Supawan.

Staporn Chirasrirungson, director and plant manager for OGC, said the company's additional stemware capacity, to be up and running by October, would start generating income in mid-2006.

For tumbler products, the company plans to expand its capacity of 15-20 million pieces a year to 115-120 million, Mr Staporn added.

He stated that the additional output would mainly serve demand from the export market, which includes countries in Southeast Asia, Europe and the United States.

Furthermore, the advanced technology to be used in the expansion project would enable the company to produce a greater variety of products.

OGC plans to produce a variety of larger-sized items, as well as new designs to be launched later this year.

At present, 66% of total output is for export, while the rest is sold domestically.

For 2005, OGC has set aside a budget of 10 million baht for marketing events locally and abroad.

The company's domestic focus will be on maintaining its 40% share of the Thai market.

The company has set an ambitious target for revenue growth of 10%. Last year, OCG's revenue increased by 1% to 1.35 billion baht, up from 1.34 billion the previous year.

The company's debt-to-equity ratio increased to 0.68 in 2004, up from 0.38 in 2003.

Net profit decreased to 180.18 million baht from 180.45 million baht in 2003, mainly due to a huge investment in its subsidiary, Ocean Sasaki Glass Co, which was worth 374 million baht.

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