CONSUMER GOODS / FOOD WRAPPING FILM

MMP upgrades product quality

ARANEE JAIIMSIN

MMP Packaging Group Co, the producer of M Wrap food wrapping film, has introduced a new additive to soften plastic materials in its film to upgrade product quality and expand sales volume. The company has invested 20 million baht to adjust its production process to use Hexamoll DINCH, an additive from BASF, said Anake Chongsathien, managing director of MMP Packaging.

BASF (Thai) signed a contract for a secured supply of 500 tonnes a year of the additives to MMP yesterday.

''Our production cost increases only slightly when we use the new additives, thanks to the support from BASF,'' said Mr Anake.

He estimated MMP's production costs would increase by 30 million baht per year due to the plasticiser change. ''Consumers would not be affected by the rising production costs as we have no plan to increase prices for the moment.''

Together with a quality upgrade, MMP also improved its packaging in order to offer more convenience to users. The company will add a 100-metre long food wrapping film to its product line this year, said Mr Anake.

''Consumption would be longer while we can save production costs,'' he said.

MMP projects sales revenue to increase 33% to two billion baht in 2007 from 1.5 billion baht last year.

Mr Anake said MMP planned to concentrate on household consumers because food-wrap utilisation in this segment remained very low compared with Japan, for example.

He said household consumption of food wrapping film would grow 400% in the next two years due to greater consumer awareness of food safety.

In 2007, the company aims to conduct more above-th-line marketing through magazines, television and the internet. At the same time, it will continue to hold below-the-line marketing events, including promotional campaigns in department stores and roadshows, said Mr Anake.

MMP has clients in 30 countries in Europe, Asia and South America. It plans to enter Madagascar, Fiji, Vietnam, Malaysia and Indonesia this year.

''What we try to do is to get business deals with small companies in small countries as we don't want our export revenue to depend on several big clients in the future,'' said Mr Anake.

Sales revenue from exports accounted for 60% of total revenue last year.

General News
Bangkok Post
Thursday January 25, 2007