In the global market, we found it increasingly difficult to do business. EPG can complete through innovation, technology, and being a global player to offer opportunities for sustainable growth. As a result, the strategy for sustainable growth is carried out in three areas in the fiscal year 2022/2023 (April 2022 - March 2023):
- Create Organic Growth from the core business with technological readiness, and highly efficient production capacity which creates innovative products to achieve continuity on the New S-Curve and to expand the market domestically and internationally to increase market share.
- Build Inorganic growth with M&A and Joint Venture investments
- Increase the budget allocated to R&D in order to develop new business areas in the future.
- Set a long-term aim of achieving "net-zero" greenhouse gas emissions by 2042.
EPG expects to increase revenues by 12 to 15% this fiscal year, with a gross margin of 29 to 32%, from the activities of the three business sectors as follows:
The Aeroflex thermal insulation business aims for a 10% to 12% revenue increase by retaining market share for premium goods in both local and foreign markets, notably in the United States and Japan. We are prepared to launch new models that fulfill safety certification criteria to grow production capacity and implement high-speed automation machinery to help decrease production costs, minimize the risk of labor dependency, and boost productivity at Aeroflex USA Inc. in the United States. It currently has an annual production capacity of 8,000 tons, allowing it to grow into ultra-low temperature insulation and air ducting systems.
Energy consumption is a fundamental factor needed for business operations, where energy activity generates greenhouse gases, so Aeroflex has set a long-term goal of zero net greenhouse gas emissions, or "Net Zero," by 2042. In the fiscal year 2022/2023 (Apr 22 - Mar 23), proactive energy conservation measures were implemented to improve the organization's energy efficiency, including a solar rooftop with a capacity of 4 MW, as well as solar rooftops at other subsidiaries such as Aeroklas and EPP, resulting in a total power capacity of 18 MW and the ability to absorb 13,500 tons of Co2eq, saving about 70 million baht per year.
The automotive parts and accessories business under the Aeroklas brand has set a sales growth target of 20-23% while continuing to work with OEM customers in Europe, Asia, and the United States to constantly develop innovative products as well as using Aeroklas' strong business channels through OEM, ODM and After Market customers to maximise the benefits. Additionally, Aeroklas has gained benefits from the global automotive industry with a direction toward electric vehicles (EV) which automotive manufacturers are expected to provide very high standards, safety, and lightweight parts.
The Australian business continues to grow to meet the demand for light commercial vehicles and SUVs. On 1st April 2022, TJM Products Pty Ltd ("TJM") changed its name to Aeroklas Asia Pacific Group ("AAPG") with a business restructuring plan to strengthen the collaboration of all businesses and brands in Australia for a more competitive future.
The EPP plastic and packaging business aims for a 5-8% sales increase while continuing to focus on implementing the "Capacities Driven" strategy to optimize production processes and continue to market food packaging in food packaging and drinking water cups, as well as raising EPP brand awareness through online and offline communication, and innovating packaging in a variety of ways to meet the needs of consumers and live a New Normal.
Furthermore, EPG Innovation Center Co., Ltd.'s R&D activities not only support the three core businesses by developing revolutionary New S-Curve goods but also perform research and development for potential new business areas.
Dr. Pawat added that The Board of Directors (meeting mo. 4/2022, dated 7 June 2022), approved Aeroklas Australia Pty Ltd, the Company's subsidiary, to acquire 100% shares of 4 Way Suspension Products Pty Ltd for the value not exceeding 75 million Australian dollars, equivalent to 1,888.3 million baht. 4 Way Suspension Products designs, manufactures, and distributes suspension products including shock absorbers, coil springs, leaf springs, and other accessories for 4WDs and pickups under the "Tough Dog" brand. This acquisition will increase the range of premium quality products with well-recognised names and quality in the market and will wider distribution opportunities in Australia and overseas. This acquisition also creates synergy value for revenue uplift and cost savings which aligns with the Company's strategic plan for sustainable growth.
Source: Worklink PR
