Bangkok Bank has approved a credit line of Bt2 billion to Vanachai Panel Industries (VPI) for construction of a particle-board factory in Surat Thani, known as the PB-3 project.
VPI needs the new plant in order to increase its capacity to produce high-quality and environmentally-friendly board that meets the needs of customers in its major markets in East Asia and Asean.
Bangkok Bank senior executive vice president Chansak Fuangfu on Tuesday said the bank was pleased to support the success of Vanachai Group (VNG), a leader in the production and distribution of environmentally friendly panels, with a credit line of Bt2 billion to its subsidiary VPI for construction of the PB-3 factory.
The funds will be used to increase annual production capacity by 450,000 cubic metres to meet demand from East Asia and Asean.
Given the good growth of the company, its stable financial status, and long partnership with Bangkok Bank, the bank is ready to fully support VNG in its international expansion, Chansak said.
VPI managing director Wanthana Jaroennawarat said that with the new Bt2-billion investment, the company aimed to complete construction of the PB-3 project and commence commercial production in the second quarter of 2019.
The investment will enable the company to double its annual particle-board production capacity to 900,000 cubic metres using an efficient and environmentally friendly production process, he added.