EPORTS ON UTILISATION OF CAPITAL-INCREASE PROCEEDS
25 July 1997
Thantawan Industry Plc. (THIP) reported on utilisation of proceeds
from its capital increase as follows:
1. Outlay of proceeds from capital increase to June 30, 1997
Plan Budget Actual Outlay Balance
Mln Bt % Mln Bt % Mln Bt %
1.1) New product developments
- T-Straws 48.0 55.8 0.0 0.0 48.0 55.8
- Degradable or
artificial-paper bags 12.0 14.0 6.5 7.6 5.5 6.4
Total 1.1) 60.0 69.8 6.5 7.6 53.5 62.2
1.2 Production-capacity improvement and expansion
- Machineries to produce
straws and plastic bags 26.0 30.2 65.1 73.6 (39.1) (45.5)
- Construction of factory
and warehouse buildings 0.0 0.0 6.7 7.8 (6.7) (7.8)
- Improvement of factory
and warehouse buildings 0.0 0.0 7.7 9.0 (7.7) (8.9)
Total 1.2) 26.0 30.2 79.5 92.4 (53.5) (62.2)
Grand Total 86.0 100.0 86.0 100.0 0.0 0.0
2. Conclusion of investment plan
2.1 The project to produce T-Straws has been cencelled because a
feasibility study suggested that the rate of return is low despite high
investment needed.
2.2 The project to produce thin plastic bags is to boost
production capacity of plastic gloves to support increasing orders from
Japan.
2.3 The project to produce plastic bags is to improve quality of
the products. The old raw material, Low Density Poly Ethylene (LDPE),
has been replaced by Poly Propylene (PP) to make the products more
flexible and transparent.
The company noted that the proceeds of Bt86 million from the capital
increase has been appropriated according to the objectives of the public
offering in September 1994, investing in production expansion of both old
and new products to increase competitive potential.
