Ocean Glass Plc will spend Bt990 million to expand production capacity by 14 million pieces to 140 mil-lion annually by the end of next year.

Suphote Sriudomporn, executive director of marketing and sales, the glassware manufacturer and distributor, said yesterday the expansion project would back up the company's strategy for next year of concentrating on foreign markets on the way to becoming a world market leader in five years.

Half of the company's investment budget will be generated internally and the rest from bank loans.

A new plant in Samut Prakan province's Bang Pu Industrial Estate would start up by the end of next year. The added output is expected to drive the company's sales to Bt2.5 billion in five years.

The plant will focus on premium products such as crystal, which will compete with global brands such as ARC, Reidel and Schott Zwiesel. The premium products may be sold under a new brand.

Exports to 50 countries account for 68 per cent of its sales. Southeast Asia contributes 45 per cent, other Asian countries 31 per cent, the US and Europe 20 per cent and the South Pacific 4 per cent.

First-half sales were up 11 per cent to Bt746.38 million, while net profit

was Bt59.5 million. Sales this year are expected to reach Bt1.6 billion, up 10 per cent from Bt1.4 billion last year. Sales are also forecast to grow 10 per cent next year.

Next year's Bt40-million marketing budget will be spent on joint promotional and marketing activities with its Asian partners.

Ocean Glass will join with its Vietnamese partner to build a showroom in Hanoi after the first outlet in Ho Chi Minh City opened early this year.

Next month, the firm's products will be displayed in Pune, a province next to Bombay in western India. That will follow last year's success of "Life's Pleasure Event", when local distributors introduced its new collections in Delhi.

In Malaysia, two Ocean counters in large department stores will be added to the existing seven stores in the country.

The firm is searching with its Cambodian distributor for a site in Siem Reap, gateway to the Angkor Wat temples, after the first showroom was opened in Phnom Penh.

Ocean Glass Trading (Shanghai) Ltd was recently established in Shanghai to coordinate marketing activities and drum up sales for its distributors in China.

On the domestic front, the company is armed with a Bt40-million budget this year to promote its products in the three market segments - retail, which makes up 40 per cent of its domestic sales, food service with 30 per cent, and premium, with 30 per cent.

Food-service customers are hotels and restaurants. Buyers of premium glass are companies such as alcohol and non-alcoholic beverage firms that use Ocean Glass products in their sales and image promotions. And retail sales are made through department stores and directly to the modern trade.

Two new stores are planned for next year. The current six showrooms are Bangkok and Phuket, Khon Kaen, Chiang Mai, Samui and Krabi. The Bangkok, Phuket and Khon Kaen operations are exclusive distributors.

"We will maintain our 48-per-cent share of the domestic glass market worth Bt1.4 billion this year and also our share next year by launching new premium products. We will soon debut our new collection, Chic & Fun, which is a patterned-glassware gift set wrapped in a beautifully designed package," Suphote said.

Somluck Srimalee

The Nation