BJC puts off B1 billion plan for Vietnam

The SET-listed trading conglomerate Berli Jucker Plc (BJC) has delayed a 1-billion-baht investment in Vietnam this year due to economic uncertainties, said president Aswin Techajareonvikul. But the company plans to start exporting its glass products to Vietnam around the end of this month to familiarise the market and to raise production in Thailand, where the company aims to raise its 70 percent use of capacity to 80 percent.

"We already have our own factory there, but after a discussion with our partner, we decided to put off the project and will revise it again next year," Aswin said yesterday.  Last year, BJC planned to invest in Vietnam in glass manufacturing machinery and building a factory.  The company will instead focus this year on acquiring trading and distribution firms in Southeast Asia to expand its market and reduce expansion risks. The budget was not disclosed. The company is also researching expanding exports to the Middle East and Africa.

BJC´s capital investment this year is down to 850 million baht from 1.966 billion last year, mostly for building and machinery maintenance. Aswin said the company would revise its growth target after first-quarter results. It targets 10 percent sales growth to about 24 billion baht in 2009. It also aims for exports to provide 10 percent of revenue this year, up from 3 percent currently.

BJC recorded sales of 22.047 billion baht last year, up 15 percent from 19.163 billion in 2007. But net profit last year dropped by 14 percent to 1.076 billion baht, from 1.255 billion, due to higher raw material prices. Only 100 shares of BJC were traded yesterday with a closing price of 4.40 baht, up eight satang.