The Mitsubishi Engineering Plastics Group (MEP), a Japanese manufacturer of engineering plastics for use in the electronics and automotive industries, yesterday opened a sales and marketing subsidiary for engineering plastics in Thailand.

Named MEP Engineering-Plastics (Thailand) (MEPT), the new company will be wholly owned by MEP's local manufacturing subsidiary, Thai Polycarbonate (TPCC), which produces polycarbonates in Rayong's Padaeng Industrial Park.

TPCC is a joint venture formed in 1996, with TOA-Dovechem Industries - which is owned by Thai businessman Pravit Tangcravakoon - holding 30 per cent, while 60 per cent is held by MEP, and 5 per cent each by Mitsubishi Gas Chemical and Mitsubishi Chemical.

Mitsubishi Gas Chemical also owns 75 per cent of another factory, Thai Polyacetal (TPAC), which produces polyacetal, with the remaining 25-per-cent stake held by TOA-Dovechem Industries.

The establishment of MEPT will help combine domestic sales channels previously run separately by TPCC and TPAC and make better use of existing support facilities like customer service and its technical centre in Bang Pakong district of Chachoengsao. TPCC has a 70-per-cent market share of the total supply of polycarbonates in Thailand, while TPAC has a 33-per-cent share of polyacetal.

MEPT president Takeo Kitamura said the company had a total annual production capacity of 160,000 tonnes for engineering plastics.

TPCC and TPAC have combined annual sales of US$550 million (Bt20.2 billion), including exports, which account for almost 90 per cent of the total.

"MEP has the right to export the engineering plastics produced by its TPCC and TPAC factories to potential markets round the world. However, MEP has no sales branch here in Thailand," said Kitamura.

He said the automotive industry had grown quite rapidly in the past seven years, since Japanese and European carmakers had invested in manufacturing plants in Thailand. The move helped increase the domestic demand for engineering plastics, which has seen rapid annual growth of 20-30 per cent.

Kwanchai Rungfapaisarn

The Nation