Business World Online
Posted on 09:19 PM, October 19, 2010
BANGKOK -- The Philippine paper unit of Siam Cement Group (SCG), Thailand’s largest industrial conglomerate, is expanding operations to power generation.
Kraft paper maker United Pulp and Paper Co., Inc. (UPPC), where SCG holds a 98% stake, is looking to build a 30-megawatt power plant in Calumpit, Bulacan in two to three years, its chief executive said.
UPPC has an existing 46.6-hectare manufacturing plant in Calumpit, Bulacan.
“We are looking into the possibility of venturing into power generation, as the country does not have enough power,” Dumrongsak Dheerakiatkumchorn, president and chief executive, told reporters.
He pointed out, however, that the company was still in the process of studying market conditions.
“If the project justifies very good returns, it’ll only takes around two to six months for the project to proceed. However, if it does not have a good return, the project will be pending,” Mr. Dumrongsak said.
Aside from power generation, UPPC is also planning to expand its billing stations to avoid importation of waste paper.
“Right now, we only have around 10 to 11 billing stations and we are in need of waste paper to help in our production,” Mr. Dumrongsak said.
The Philippines consumes 800,000 tons of paper a year, but Mr. Dumrongsak said the firm “can only collect 400,000 tons to be used for recycling.”
UPPC, the country’s biggest manufacturer of liner board and corrugating medium paper used in carton packaging products, is producing only 220,000 tons of paper a year because of limited capacity. “We still feel that the Philippines is a good opportunity for us to expand,” Mr. Dumrongsak said.
SCG bought the paper firm from the PHINMA group in 2003.
The Thai conglomerate holds 46% of the Philippines’ largest ceramic tile maker, Mariwasa Siam Ceramics, Inc., under a joint venture with the Coseteng family, which has a 54% stake. -- Judy Dannibelle T. Chua Co
UPPC has an existing 46.6-hectare manufacturing plant in Calumpit, Bulacan.
“We are looking into the possibility of venturing into power generation, as the country does not have enough power,” Dumrongsak Dheerakiatkumchorn, president and chief executive, told reporters.
He pointed out, however, that the company was still in the process of studying market conditions.
“If the project justifies very good returns, it’ll only takes around two to six months for the project to proceed. However, if it does not have a good return, the project will be pending,” Mr. Dumrongsak said.
Aside from power generation, UPPC is also planning to expand its billing stations to avoid importation of waste paper.
“Right now, we only have around 10 to 11 billing stations and we are in need of waste paper to help in our production,” Mr. Dumrongsak said.
The Philippines consumes 800,000 tons of paper a year, but Mr. Dumrongsak said the firm “can only collect 400,000 tons to be used for recycling.”
UPPC, the country’s biggest manufacturer of liner board and corrugating medium paper used in carton packaging products, is producing only 220,000 tons of paper a year because of limited capacity. “We still feel that the Philippines is a good opportunity for us to expand,” Mr. Dumrongsak said.
SCG bought the paper firm from the PHINMA group in 2003.
The Thai conglomerate holds 46% of the Philippines’ largest ceramic tile maker, Mariwasa Siam Ceramics, Inc., under a joint venture with the Coseteng family, which has a 54% stake. -- Judy Dannibelle T. Chua Co
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