As one of the world's leading polymer companies, Costello is undertaking a major investment to improve the capacity of its specialty films at Rayong. Thomas Toepfer, the company's chief financial officer, said yesterday that the company was expanding its Maputaput port (Map Ta Phut) manufacturing facility to ensure it kept pace with global demand growth. Although Toepfer declined to disclose specific investment value, he said it would be a major investment. The new investment is part of the company's expansion of its global film capacity, which has invested about 100 million euros this year.
In the three years since 2019, the company's overall business annual capital expenditure will increase to 1.2 billion euros from about 500 million euros last year and 6.5 to 700 million euros this year to maintain its growth prospects. The company's capacity expansion in Thailand's specialty films is expected to be completed by the end of 2019, which will increase production by about 50% per cent. Special films are used in many industries, including automobiles and medical professions. For example, they can be used to make certain components in a car, such as dashboards. They can also be used for coating safety cards.
Toepfer said sales of Koth's three existing production bases in Thailand achieved a two-digit growth rate in the second quarter of this year. The German company has three production bases in Thailand, all affiliated to Covestro (Thailand), which covers polyurethane, polycarbonate and coatings, adhesives and specialty products. The production base of Maputaput port (Map Ta Phut) is used for the production of polycarbonate and special films. The company also has a production base located in the Thai Samut Prakarn Bangpoo, the production of polyurethane and customized products according to customer demand for customers.
Most of the products produced by the company in Thailand's three production sites are for export. Koth's manufacturing facility at Maputaput Port (Map Ta Phut) is one of its eight largest manufacturing plants operating globally. The factory has the most advanced technology and highly skilled staff.
Toepfer said the company also studied the possibility of expanding polycarbonate and polyurethane capacity in Thailand. He also said that Thailand, as its existing hub in the ASEAN region, will continue to invest in Thailand. He also said that Koth Thailand (Covestro Thailand) would indirectly benefit from the Eastern Economic Corridor (EEC), whose clients had established business or planned to operate in the region and would increase demand for their products as a result of their own growth. Toepfer said: ' The Asia-Pacific region, including Thailand and other ASEAN countries, is Koth's strategic growth area. Thailand is a strategic location for our production and further investment.
It provides good infrastructure, technical expertise, and government support for foreign direct investment (FDI), including new projects in the EEC and a huge logistics network. Koth to promote investment in Thailand through expansion of plant