Panjawattana Plastic Public Company Limited

Panjawattana Plastic Public Company Limited Annual Report 2012Message from the Board of DirectorsTo our shareholders,During 2012, Panjawattana Plastic PLC. became a MAI listed company, which marks the firststep in significant corporate changes. The Company is firmly committed to corporate development inunder the guidelines of sustainable development by giving importance and adhering to the principlesof good governance. Over the past year, the Company was ranked as in a “Very Good” group in asurveillance project on the governance of registered company businesses, which was the first year theCompany was evaluated following its listing. The Company’s Board of Directors realizes thesignificance of this accomplishment and is determined to continue with corporate development untilthe Company earns an “Excellent” level of good governance systems, which is the foundation ofsuccessful business operations for the corporation with security and sustainability alongside financialwealth and strength. The Company participated in a project for developing registered companies inthe area of good governance in 2012 with the Stock Exchange of Thailand with PricewaterhouseCoopers ABAS Co., Ltd. as a consultant.In terms of growth, the Company emphasizes investments in projects with effective growthdirections for the industry. During the past year, the Company invested in the construction of factorybuildings at Pinthong Industrial Estate, Chonburi, and ordered the purchase of machinery formanufacturing automobile parts, which was an extension of the project on empty plots of landpurchased in 2011. The Company constructed dairy packaging warehouse buildings and expanded theclean room building in Samutsakorn together with modifying the clean room system, purchasingmachinery and equipment with machinery modifications for use in producing packages in otherindustries, such as lubricant oils, agricultural chemicals and consumer goods. The value of investmentin both projects was approximately five hundred and sixty-six million baht. The first phase of theproject for constructing the factory buildings at Pinthong Industrial Estate, Chonburi, is anticipated tobe completed during the second quarter of 2013 while the second phase is anticipated to be completedwith commencement of production in 2014. The project for constructing dairy packaging warehousebuildings and expanding the clean room building in Samutsakorn was completed and beganproduction during the first quarter of 2012. Investments in both projects were made to support thegrowth of the automobile parts industry and the packaging industry concerned with milk, lubricant,agricultural chemical and consumer goods industries which have high growth rates due to economictrends of domestic consumption and indirect exports, including the support of economic growth in theASEAN region with the launching of the ASEAN Economic Community in 2016.Concerning the Company’s performance in 2012, the Company and its subsidiaries grew withincome from sales amounting to approximately 2,014 million baht (an increase of 22.8% from theprevious year) with a net profit of approximately 203 million baht (an increase of 39.5% from theprevious year). Confidence in product and service quality contributed to growth in sales figures,which was noted by the administration and work teams with great importance. The Company hasalways maintained its main strategy of becoming a “World Class Manufacturing Company”. Inaddition to management meeting international quality work system standards including ISO 9000,ISO 14000, GMP, HACCP and ISO/TS 16949 automobile industry quality system standards, theCompany also adheres to and implements Japan’s world class quality management philosophy (TPM:Total Productive Maintenance) as its core system for the management of production and servicequality systems aimed at promoting effective quality management throughout the corporation. Overthe past year, the Company applied for TPM evaluations for the first time and received the 2012 TPMExcellence Awards Winner (Outside Japan) award, which is an internationally valued and acceptedhonorary award in the field of industry for world class quality standards from Japan. PJW can be1