Thai company with global ambitions targets net-zero emissions by 2042

EPG focuses on investing in world-class, innovative businesses that make polymer and plastic products through its subsidiaries Aeroflex, which makes thermal insulation; Aeroklas, which makes parts and accessories for cars; and Eastern Polypack Co Ltd (EPP), which makes plastic and packaging.

Automotive parts and accessories were the biggest contributors to its revenue, accounting for 50.9% in the second quarter of fiscal year 2022-23 (July 22-Sep 22); insulation accounted for 29.7% and plastic and packaging for 19.3%.

Pawat Vitoorapakorn, the CEO of EPG and Aeroflex Co LtdPawat Vitoorapakorn, the CEO of EPG and Aeroflex Co Ltd, is ambitious. He is not satisfied with dominance in the domestic market. He wants the companies' products to gain worldwide recognition and his motto is: "The world is the market”.

"Our aggressive business strategies centre on NIN [network, innovation, niche] markets,” he says. “Aeroflex, for example, develops and sells only novel goods protected by legal patents to a niche market. Because of this, we can sell in large quantities in our specialised markets. Only a few manufacturers can compete with EPG globally," he says.

Speaking of the company’s history, Pawat says: “The Vitoorapakorn family founded Eastern Polymer Group Public Company Limited in 1978. Thermal insulation, vehicle and accessories, plastic and packaging, and R&D are the primary businesses. In 2014, we changed our name to Holding Company and listed on the Stock Exchange of Thailand, raising 2.8 billion baht after having begun with an investment of 1 million baht.

EPG is now investing in domestic and foreign enterprises, focusing on polymer and plastic processing, with revenues from three major industries."

Aeroflex has factories in both Thailand and the United States. They also work together in China and India. In the second quarter of 2022-23, 76% of Aeroflex's sales came from outside the country, while only 24% were from Thailand. America, Asia, and the Middle East make up the main international markets, says Pawat.

Eastern Polypack manufactures and distributes disposable plastic food and beverage containers, cups, plates, and bowls under the EPP brand

Aeroklas Co Ltd designs and develops patented vehicle parts and accessories. Aeroklas' car components and accessories are used to decorate and improve the efficiency of pickup trucks. Aeroklas distributes the brand domestically and internationally.

Eastern Polypack manufactures and distributes disposable plastic food and beverage containers, cups, plates, and bowls under the EPP brand. EPP is a premium brand in the food and beverage industry, he says, adding, the company introduced "eici" last year to expand into non-premium products.

"During the pandemic, the company experienced the same difficulties as other industries because our customers were impacted. Fortunately, we had another business opportunity with Eastern Polypack, which sells food containers. They became the pandemic's demand-pull delivery food business. As a result, our company did not suffer much of an impact," he says.

Pawat said that in fiscal year 2022–2023, EPG expects to increase revenue by 12–15%, with a gross margin of 29–32%. He added that the group is focusing on a strategy to achieve sustainable growth in four areas:

▪️ Create organic growth from the core business with technological readiness and highly efficient production capacity that create innovative products to achieve continuity in the new S-curve and to expand the market domestically and internationally to increase market share.
▪️ Build joint venture investments.
▪️ Increase the budget allocated to R&D to develop a new business era in the future.
▪️ Set the long-term aim of achieving "net-zero" greenhouse gas emissions by 2042.

EPG is also committed to its vision of long-term growth by adhering to the motto "Contribution to a better society”. EPG adheres to its commitment of "Creating a World in Harmony with Technology and Innovation", says Pawat.

"Energy consumption is a fundamental need for business operations, and energy activity generates greenhouse gases. So Aeroflex has set a long-term goal of net zero by 2042,” he says. “Proactive energy conservation measures have been implemented to improve the organisation's energy efficiency, including a solar rooftop, resulting in total power capacity of 18 megawatts and the ability to absorb 13,500 tons of CO2, saving about 70 million baht per year," he added.