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The Thailand-headquartered Japanese Polymer Group (EPG) is an integral a part of the availability chains of a number of the world’s main companies. The conglomerate operates throughout a number of traces of enterprise: thermal insulation from Aeroflex; auto elements and equipment from Aeroklas, and plastic and packaging by way of Japanese Polypack.
Established in 1978, EPG is at present strolling the road between working a worthwhile enterprise, whereas additionally doing proper from a company perspective. It has dedicated to web zero greenhouse gasoline emissions by 2042 — an important choice contemplating the unfold of the conglomerate’s enterprise, with operations the world over.
A worldwide focus
EPG has set itself a progress goal of THB 20,000 million (roughly US$587 million) within the subsequent 5 years — the present income stands at round THB 13,000 million (roughly US$382 million) with a ten% growth anticipated over the subsequent yr.
Aeroklas at present contributes 49% to the group’s income and is slated to develop 10% with the growth in manufacturing of its core providing. The corporate can be engaged on the year-on-year efficiency of its Australia operation.
For the fiscal yr ending March 2024, Aeroflex is anticipated to develop 10% throughout the US and home operations. The Ethylene Propylene Diene Monomer (EPDM) insulation product from Aeroflex is seeing sturdy traction within the US, whereas Japan has emerged as a number one market in APAC. Growing Aeroflex’s manufacturing within the USA has given progress a fillip. Working at a decrease base, EPP is estimated to develop between 10% and 12%. EPG has invested to debottleneck its manufacturing capabilities.
Talking about EPG’s abroad growth, Pawat Vitoorapakorn, vice chairman, CEO and deputy CEO of R&D enterprise stated, “Our JV in India (AAI) is a brilliant spot that has offered good fairness sharing. South Africa is a pending alternative — we anticipate manufacturing to ramp up quickly.”
Among the many developments to have positively impacted EPG’s bottomline is increased vitality costs which has resulted in a rise in demand for insulation merchandise. The corporate made a well-timed change to photo voltaic panels simply earlier than a rally in vitality charges. Vitoorapakorn stated, “It has saved us round THB 100 million a yr.”
Ongoing geopolitical tensions have precipitated fluctuations within the provide chain, with the value of oil adversely affecting the manufacturing of polymer plastic. In consequence, analysis and improvement are extra essential than ever earlier than. EPG is spending 2% of its income from gross sales in each direct and oblique funding of R&D. Vitoorapakorn stated, “We established EPG Innovation Centre (EIC) as a central R&D unit. As well as, every enterprise unit has its personal in-house R&D operate.”
A measured embrace of ESG
EPG has constructed its drive in direction of ESG on the pillars of making services; constructing an revolutionary organisation; and partnerships that can create sustainable companies by creating shared worth amongst stakeholders.
Traits which can be driving EPG to embrace ESG embrace the rising recognition of EVs in APAC. Vitoorapakorn stated, “Our main market (one-ton pick-up vehicles) will take longer than passenger vehicles and SUVs to transit into full EV mode. However as a light-weight automotive elements and equipment specialist, Aeroklas is working very intently with automakers to broaden into this house. Our present core merchandise have a confirmed historical past of decreasing the burden of a automobile after set up. That is superb for EV to decrease the burden on battery utilization.”
The corporate has been contending with questions round its core merchandise — polymers and their sustainability in relation to different supplies. Vitoorapakorn stated, “At EPG, we imagine in a round economic system and that polymers can have many lives, getting remodeled into new merchandise a number of instances.” EPG has been making use of the ideas of cut back, reuse, and recycle, utilising scrap and trimmed out materials within the manufacturing course of.
To make sure that sustainability turns into ingrained within the organisation, EPG has taken a number of steps. Vitoorapakorn stated, “We emphasise sustainability, not simply from a PR perspective however from the perspective of long-term progress.” The working group on sustainability contains representatives from every enterprise unit, in addition to IT, HR, finance, inner audit, and the workplace of the president. Vitoorapakorn stated, “The group accumulates ESG working knowledge, and discusses whether or not now we have achieved our targets. We want this suggestions to guage our efficiency. We share the outcomes internally and externally, each for disclosure and to enhance over the subsequent yr.”
Vitoorapakorn concluded, “Companies massive or small must be held liable for the emission of greenhouse gases. By aiming for web zero, we’re not simply doing the suitable factor. We see a enterprise alternative in serving to others obtain web zero, utilizing our merchandise.”
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