Release Date: November 9th, 2009
Source: Oriental Daily Newspaper
Section: Economics/page B03

 

http://orientaldaily.on.cc/cnt/finance/20091109/00202_012.html?pubdate=20091109
 

 

Mr. Thirawit Leetavorn, senior executive vice president and spokesperson of Double A, a paper manufacturer in Thailand, mentioned that parent company Advance Agro is undergoing restructuring, paper and pulp mills as well as the brand of "Double A" will be under the Company; 

Though Mr. Leetavorn said it would take time for business restructuring and there's no concrete IPO plan so far, there is market rumour about the company selecting sponsors for IPO and going to get listed in Hong Kong next year the earliest
Double A is egistered in Cayman Island with a sales and distribution network covering 100 countries worldwide
Since operation commenced in 1995, the paper mill and pulp mill now each have an annual production capacity of 600,000 tons respectively, and the company plans to further expand the annual production capacity of paper to 850,000 tons with investment amount of USD200 million for a new plant which will commence
operation next year                                    

The production volume of the company recorded a CAGR of 8.5% for the past 5 years, and is targeted to reach double digit growth in the future
The company takes a Paper from Farmed Tree approach with raw material from farmed trees planted by
over 1.5 million contract farmers, and it sells saplings to farmers at 5 Baht each and buy back the trees at 70-100 Baht each after 3-5 years 
The Company draws on water from manmade reservoir collecting rain water and consumes 6-7 metre cube per ton of pulp which represents only 10% of water that the industry consumes on average
Double A enjoys a premium price of 20% when compared with its peers and targets at premium market, while expenses on advertising takes up 8% of total revenue

One-third of revenue was contributed from Thailand market and others are export, mainly to Asia