Friday, November 20, 2009

Thai Union formed JV to produce high grade tuna oil

Thai Union Manufacturing, Co., Ltd., a member of the Thai Union Group of Companies, has joined hands with Nippon Suisan Kaisha Limited of Japan to produce high grade tuna oil in Thailand. Utilizing the state of the art technologies, the new venture is the first in Thailand that is capable of manufacturing high grade ingredient that is suitable for baby formulas. In addition to creating more value-added products, the JV will also help reduce material wastes from Thai Union Group’s main seafood production lines.


Thai Union Frozen Products PLC (TUF)’s president, Thiraphong Chansiri, revealed that TUF’s subsidiary Thai Union Manufacturing, Co., Ltd., entered into an agreement with Nippon Suisan Kaisha Limited, a leading Japanese seafood company, to set up TN Fine Chemicals Co., Ltd. With the registered capital of 90 million baht, the new firm aims to develop seafood by-products into fine chemical products that can be used as ingredients in dietary supplements and pharmaceutical products.

While Thailand is a major seafood producer in the world, the country is also the world’s number one manufacturer and exporter of processed tuna. Thai Union Group management believes that seafood by-products have significant potential for further development into high value-added products. TN Fine Chemicals plans to invest more than 80 million baht in equipment and machinery based on new production technologies that are never used in Thailand before. The first phase of production will begin with tuna oil products. The firm aims to produce high grade tuna oil suitable as an ingredient for baby formulas that help enhance brain development in young children.

Besides tuna oil, the joint investment also plans to extract glucosamine from shrimp and crab shells. Glucosamine is a key ingredient of pharmaceutical products for treating arthritis. The chemical can act as a lubricating fluid in the human joints.

Khun Thiraphong further emphasized, “These new projects will make better use of waste materials from our main seafood production lines, helping us achieve our environmental objectives, while adding values to these by-products and diversify our product portfolio.”

At this initial phase, TN Fine Chemicals will produce 540 ton of tuna oil per year, with sales expected to exceed 125 million baht. Japan, the US, and the European Union are key export markets for this product. This investment represents a significant step in turning Thailand's seafood by-products into high value-added export items with a potential to generate substantial income for the country and promoting a more efficient use of natural resources.

As for TUF, business performance for the first three quarters has shown remarkable growth. Net profit rose 39% from the same period a year ago to reach 2,625.4 million baht. Sales in Thai baht term equaled 51,792.8 million baht, or 1,495.6 million US dollar term. The company is confident that all of its subsidiary companies can continue to grow sustainably in terms of sales and profits.

Friday, November 13, 2009

TUF branches into tuna oil

       Thai Union Manufacturing Co, an affiliate of Thai Union Frozen Products Plc (TUF),has formed a joint venture with Nippon Suisan Kaisha Limited, a leading Japanese seafood company, to produce high-grade tuna oil.
       The new company, TN Fine Chemicals Co, has 90 million baht in registered capital and will convert seafood byproducts into refined chemical products that can be used as ingredients in dietary supplements and pharmaceuticals, said TUF president Thiraphong Chansiri.
       Thailand is the world's main producer and exporter of processed tuna, he said.
       The group believes that seafood byproducts have significant potential to be developed into high value-added goods.
       TN Fine Chemicals plans to invest more than 80 million baht in new equipment and machinery that has never been used in Thailand before, said Mr Thiraphong.
       The first phase will produce high-grade tuna oil suitable for use in baby milk formula.
       TN Fine Chemicals plans to produce 540 tonnes of tuna oil a year, garnering sales of more than 125 million baht. The product will be exported mainly to Japan,the US and the EU.
       The joint venture firm also plans to produce glucosamine, a health food product extracted from shrimp and crab shells.
       "These new projects will make better use of waste materials from our main seafood production lines, helping us achieve our environmental objectives,while adding value to these by-products and diversify our product portfolio," Mr Thiraphong said.
       TUF, the world's second-largest tuna company, reported strong sales of more than 51 billion baht in the first nine months of the year.
       TUF shares closed yesterday on the SET at 27.25 baht, down 25 satang, in trade worth 46.54 million baht.

THAI UNION IN TUNA-OIL JV WITH JAPANESE SEAFOOD FIRM

       Thai Union Manufacturing has joined hands with Nippon Suisan Kaisha of Japan to produce high-grade tuna oil in Thailand.
       Utilising state-of-the-art technologies, the new venture is the first in Thailand that is capable of manufacturing high-grade ingredients suitable for baby formulas. Besides creating more value-added products, the advanced technology will also help reduce material wastes from Thai Union Group's main seafood production lines.
       Thai Union Manufacturing is a subsidiary of Thai Union Frozen Products, the country's leading seafood and tuna manufacturer and exporter, while Nippon Suisan Kaisha is a leading Japanese seafood company.
       The plant is located at Samut Sakhon, TUF's manufacturing-based area.
       TUF president Thiraphong Chansiri said yesterday that it has to set up TN Fine Chemicals to facilitate the joint venture operation. With registered capital of Bt90 million, the Japanese partner holds the majority stake of 51 per cent and TUF handles the remainder.
       The new firm aims to develop seafood by-products into fine chemical products that can be used as ingredients in dietary supplements and pharmaceutical products.
       While Thailand is a major seafood producer, the country is also the world's No 1 manufacturer and exporter of processed tuna.
       Thai Union Group believes that seafood by-products have significant potential for further development into high value-added products.
       TN Fine Chemicals plans to invest more than Bt80 million in equipment and machinery based on production technologies that have never been used in Thailand before.
       The first phase of production will begin with tuna oil products. The firm aims to produce high-grade tuna oil suitable as an ingredient for baby formulas that help enhance brain development in young children.
       Besides tuna oil, the joint investment also plans to extract glucosamine from shrimp and crab shells. Glucosamine is a key ingredient in pharmaceutical products for treating arthritis. The chemical can act as a lubricating fluid in human joints.
       "These new projects will make better use of waste materials from our main seafood production lines, helping us achieve our environmental objectives, while adding value to these by-products and diversifying our product portfolio," Thiraphong said
       At this initial phase, TN Fine Chemicals will produce 540 tonnes of tuna oil per year, with sales expected to exceed Bt125 million. Japan, the US and European Union are key export markets for this product.
       This investment represents a significant step in turning Thailand's seafood by-products into high value-added export items with the potential to generate substantial income for the country and promote a more efficient use of natural resources.
       TUF's performance for the first three quarters has shown remarkable growth. Net profit rose 39 per cent from the same period a year ago to Bt2.63 billion. Sales reached Bt51.8 billion, or US$1.5 billion. The company is confident that all of its subsidiaries can continue to grow sustainably in sales and profits.

Sunday, November 8, 2009

BT90M INVESTMENT IN HOUSE BRANDS

       Central Food Retail, a leading supermarket operator, will spend Bt90 million in developing house brands with the ambition of getting them to double their contribution to sales by the end of next year.
       According to a study completed in September by ACNielsen, the sales of hourse brands at most retail outlets had grown by more than 20 per cent year on year.
       Phattaraporn Phenpraphat, vice president for marketing and public relations of Central Food Retail, which operates Tops supermarkets and Central Food Hall stores, said Thai consumers had changed their shopping habits and were opting more for cheaper house brands.
       "The ACNielsen survey also shows that the contribution to sales by house brands had grown from between 2 and 3 per cent last year to 3 to 5 per cent this year," she said.
       Phattaraporn added that the firm was going to concentrate on developing its won brands and spend more on packaging and marketing them. It expects the sale of its house brnads to rise from the Bt450 million targeted for this year to about Bt750 million next year. Of the house brands, 70 to 80 per cent are food items.
       Central Food Retail spent almost three years doing a feasibility study and looking into consumer insights about the possibility of its own brands, and launched more than 1,000 items under the house brands of Cooking for Fun, My Choice and Tops.
       The Tops brand covers consumer products in food and non-food categories, Cooking for Fun covers food and cooking ingredients, while My Choice covers fresh food and nonfood items.
       Nick Reitmerier, vice president of the buying department responsible for perishable, produce, international food, wine and own-brand items, said the company was hoping to double the sales contribution of its own brands from the current 2 per cent to 4 per cent next year.
       In the first 10 months of this year, house-brand products posted Bt400 million in sales and are expected to hit Bt450 million by year-end.
       "We want to increase the number of house-brand items from the current 1,000 to about 1,500 next year," Reitmeier said.
       Tops and Central Food Hall stores have about 16,000 products on their shelves, and Central Food Retail wants to differentiate its own brand by focusing on pricing as a sales strategy.
       "We want to promote our brands as top-quality products that are good value for money," he added.
       Meanwhile, Phattaraporn said local vendors supplied about 70 to 80 per cent of the house-brand products and that there appeared to be great opportunities for these items overseas.
       "We have been approached by retailers in the UK, Singapore and Belgium. The deals will be concluded very soon," she said.