KING PAC EYES NO1 SPOT

       King Pac Industrial(KPI), Asia's largest plastic-bag manufacturer, wants to become the world's leading plasticbag maket in the next five years and to develop the country's first industrial estate for the plastics sector.
       KPI was established in 2000 and is 100-per-cent owned by the Julasaksrisakul family. The company manufactures various types of plastic bags with a monthly production capacity of 8,000 tonnes. It exports to markets around the world including Japan, Europe and the United States.
       Pattida Julasksrisakul, assistant managing director and the owner's daughter, said the firm previously focused only on international markets, but changed its strategy to begin marketing in Thailand last vear following the impact of the global economic crisis and an increase in its production capacity.
       "In only one year, the make-up of our sales has changed to 65 per cent exports and 35 per cent domestic sales. This success is due to our position as the leading source of bags for plastic-bag users," she said.
       To achieve its five-year goal, it plans to make aggressive investments and list on the Stock Exchange of Thailand to mobilise funds. It presently has registered capital of Bt200 million.
       "If we want to be the world's number one, we need to boost our production capacity to more than 18,000 tonnes per month, which will require around Bt1 billion for new machinery alone," she said.
       KPI also has a plan to develop 700 to 800 rai of land in Chon Buri to be the country's first plastics industrial estate.
       "Our idea is to create more bargaining power for local plastic-makers and strengthen them in terms of the supply chain and technology transfer.
       "Forty per cent of the total area will be reserved for our company and the rest for other plastic-marker," she said.
       "Our strength is that we have our own know-how, technology and innovative products. We are ready to transfer our know-how to local plastic goods-makers to develop their production process," Pattida said.
       She said the firm allocated 1 per cent of its sales revenue every year to research and development. It generated total sales of Bt4.5 billion in 2008 and targets growth of 10 to 15 per cent in 2009.
       KPI has set up a subsidiary, Dpac Industrial, to be responsible for trading and marketing in Thailand.
       Despite the rapid growth of its domestic sales, KPI will maintain the proportion of its sales at 65 per cent from exports and 35 per cent from the domestic market, she added.