Thai inventor eyes sales of B100m

SOMPORN THAPANACHAI

M.C. Udomthrap, a producer of wood-substitute products, aims to penetrate the construction market with innovative products and a target of 100 million baht in sales in its first year. The company applies a patented formula in wood-plastic production to manufacture timber with properties and texture similar to real wood as much as possible.

The products, introduced to the market under the Arto brand, mainly use sawdust from rubber wood, a waste from the furniture industry, and plastic pallets in the production.

Deputy managing director Thanadol Sattabongkot said the company used sawdust at a high rate, or 60% of all raw materials, while almost 40% was thermoplastic, to give the feel of wood texture.

Designed for both outdoor and indoor use, the products are priced in the range of 111 to 670 baht per metre. But at this stage, they only come in pieces 12mm and 38 mm thick at various lengths.

Although there are other brands of wood-substitute products in the market, Mr Thanadol pointed out that Arto wood used plastic in the binding process while others used cement.

Through the use of plastic binding and a high percentage of fibre in the production, M.C. Udomthrap claims to have products with a unique texture that can be used with any kind of woodworking tools. The products also have a low rate of moisture absorption and resist wood mites and termites.

They are also durable with 40 years of life and the company guarantees its quality with a repurchase plan after 15 years of use by paying 40-50% of the purchase prices.

Arto wood is priced in the same range as real hardwood but the company believes that the overall construction cost would be cheaper than using real wood as the products are easier to install in a knock-down process.

So far the company has already invested 300 million baht in establishing its factory, with two machines and a full capacity of 720 tonnes of wood plastic a month. It currently runs at 40%.

The company targets customers such as architects, real-estate developers and retail buyers who want timber for home repairing or expansion.

A winner of the Young Technologist Award granted by the Foundation for the Promotion of Science and Technology in 2002 for his invention, Mr Thanadol pursued his dream to commercialise his invention with the introduction of Arto wood products.

M.C. Udomthrap was established two years ago with the support from the National Innovation Agency, Office of Small and Medium Enterprises Promotion and SME Development Bank. The three government agencies hold 51% of registered capital of 104.9 million baht.

Sumit Kaewsith, chief of the SMEs Mentorship Project, said the agencies wanted to support inventors looking to commercialise their products, with the goal of listing them in five years, when the agencies pulled out.

For M.C. Udomthrap, the company projects to have five factories with four machines each by then, generating revenue of at least one billion baht a year.

Bangkok Post
Friday February 02, 2007