INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd

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SAHA-UNION
SAHA-UNION PUBLIC COMPANY LIMITED
PLASTIC, RUBBER
AND METAL BUSINESS
TYPES OF PRODUCTS OR SERVICES
The affiliated companies manufacture and distribute 4 groups
of products:
1. Plastic products: including parts and equipment used
in industry by thermal injection. The important products
are plastic parts used in automobile and motorcycle
industries, plastic parts for electrical appliances,
electronics and plastic parts used in household products.
2. Rubber products: produced in the Company’s integrated
rubber industry from rubber plantation to harvesting latex
for producing block rubber which will be used to produce
rubber threads, rubber tapes, elastic webbings and
elastic braids under the trademark “Venus” to be used
in the ready-made apparel industry such as lingerie,
napkin and elastic bands.
3. Adhesive products: including cellulose tapes, transparent
tapes, adhesive papers and printing tapes to be used in
packaging and office supplies industries.
4. Stainless steel: including vacuum bottles and Lunch
boxes, stainless pipes and household utensils.
PERFORMANCE IN 2011
The natural disaster in Japan during the 2 nd quarter and the
massive flood incident in Thailand during the 4 th quarter affected
this business group since some companies manufacturing
automobile parts and almost all of the companies in this group
were located in Bang Chan Industrial Estate, which was hit by
the flood. Nevertheless, a prevention plan had been developed
in advanced, and there was extensive collaboration in solving
unexpected incidents. Also, the level of water was not very
high, and the flood lasted only for a short time; as a result, the
properties’ damage was only limited, and the business was
able to resume immediately after the flood receded. In terms
of profitability, however, the impact was quite substantial.
The plastic parts industry group, which produced electrical
appliances and automobile parts, significantly encountered
decreased incomes compared to those from the previous year
due to the direct impact from the natural disaster in Japan
and the massive flood incident. The incidents resulted in the
decease in production due to shortage in auto parts and in
SUPPLY OF MATERIALS FOR PRODUCTION
OR SERVICE
Plastic parts
The raw material used in the process is plastic pellet, which is
procured from within the country and importing from outside
of the country.
Rubber
Raw materials are mainly acquired domestically from rubber
plantation and rubber plants owned by the companies in the
group. If insufficient, more materials will be ordered from
other manufacturers.
Adhesive Tapes
Glue solvent used to coat tape surface contains latex
and chemical substances from petrochemical process.
Transparent tapes consist of cellophane tapes and OPP.
All these materials are procured both domestically and
overseas.
Stainless Steel
The main raw material is stainless metal sheet, which is
procured both domestically and overseas
the delay in launching a new model car. Nevertheless, the
operating results in the 1 st and the 3 rd quarter were good.
Productivity expansion of vacuum bottle factories continued.
New factories were improved as planned without any effects
from floods. The current capacity is 7.5 million bottles per year
with a plan to expand to 12 million bottles per year to support
the fast growing market in Japan and new economic countries.
The rubber business group was affected by the world’s
economic recession, particularly in the EU countries, while
the domestic orders also shrank during the massive flood
incident. There were fluctuations in rubber price, which soared
at the beginning of the year and dropped at year end due to a
decrease in demand from China. The changing rubber prices
were advantageous to rubber plantation and block rubber
plants; however, industries using rubber as raw material such
as adhesive tape and rubber thread plants, had to face rising
costs of rubber and chemical products, while the sales in both
domestic and overseas were decreasing.