Authors: Chucshwal SangmhchaiASST.Marketing Manager

Presenter: LEE SOON HUAT

PRESENTATION OF BUTYL RUBBER

ADHESIVE,TAPE & SEALANT PROJECT

PROPOSAL

Business & Investment plan

SCOPELocalization and manufacture whole range of Butyl Adhesive,Tape & Sealant for

Automotive industry Anti flutter,spot weld Structural adhesive Damper Noise insulator Putty Butyl tape Stiffener

CONSTRUCTION

Water proof roofing butyl tape Bathroom tape

Air Conditioner

Cork tape Damper Noise insulator Putty

Electrical

Insulation and sealing tape

This support consists for project study aimed at providing

quantitative and qualitative information on the Butyl

Adhesive,Tape & Sealant in Thailand and Southeast Asia region,highlighting business

opportunities and recommending an adequate product range

compatible with company business objectives.To further indentify and

quantify the product and manufacturing technology and to estimate the investment required

for the Butyl Adhesive,Tape & Sealant compounding operation.

Business Plan

To extend company business, market and product range to increase company income and to achieve company continuos growth goal.

Began target market was Automotive industry which keep continuos high growing and as a high potential market in Thailand even in Southeast Asia region In the coming future 10 years. As suitable timing to meet with all car maker with their localization policy.

Nissan Motor Thailand will be our first potential customer with demand of door trim grade Butyl Tape at 7 million meter annumly.

Business Plan

To be the 2nd local manufacturer of Butyl Adhesive,Tape & Sealant for Automotive industry which currently have only one local manufacturer name Locthai-Orotex,all others competitor was imported.

High opportunity to built and set up company market position in Automotive industry to stabilize and secure of company growing.

Investment Plan

Organizer – Business Unit 2 Location – 271 Business Unit 2 plant 3 years short term investment plan with

maximum 5 production line with total capacity of 20 million meter annumly,beginning on early of year 2012 and complete on end of year 2014.

Plant area required 600 m2,plan into 2 separate area,compounding and extrusion.

Total investment including plant area,labortary equipments,production machine equipments,installation expenses,human resources and etc estimately will be around THB 25 million excluded technology know-how.

1st stage investment plan will be begin on end of 2011 and production trial run on Mar.2012.Projected investment will be 2 production line with total capacity of 7 million meter annumly,together with labortary equipments,plan investment will be around THB 10 million.

Investment Plan

Investment Plan

2nd stage investment projected at early of year 2013 with 2 extra production line cost around THB 10 million.

3rd stage investment projected at end of year 2014 with one extra production line cost around THB 5 million.

Total technology know-how cost still under study and will also separate into 3 stage,it will be by consulted or Joint venture will depend on final conclusion.A report will be issue separately with conclusions and recommendations.

With roughly estimate variable margin at 40%,the investment return will be around 2 years on 50% capacity running.

The project will also support by implementation of TS 16949,cost around THB 2 million,which is a main requirement for Automotive industry as a tier 1 supplier for car maker.We will also upgrade our quality management system paralelly with 5S system to achieve our goal as international standard manufacturer.

The investigation of the economics of these products

Variable cost – estimately about 50% Variable margin – estimately about 40% Total current Thailand Automotive market

demand for door trim Butyl Tape is 60 million meter annumly and will be increase every year not less than 10%.Projected market share at not less than 20%.

Mid to long term expansion investment have to consider at BOI zone 3 area due to not left any available expansion space after these project.Also an advantages of cost saving on investment like import tax and income tax excemption for some period years.