Bangkok, July 25, 2024 – KCG Corporation Public Company Limited (KCG), a leading western culinary provider for modern lifestyle from Thailand joined a strategic partnership with five companies to expand its butter and margarine production line. KCG signed a memorandum of understanding (MOU) with Mirai MEP Engineering Co., Ltd., Kerry & Brown (Thailand) Co., Ltd., March Utilities Co., Ltd., Kinetic Co., Ltd., and Cheng Hua (Thailand) Co., Ltd., with a total project investment of over 217 million baht. The signing ceremony took place on May 30, 2024, at THAIFEX–ANUGA ASIA 2024.
Mr. Damrongchai Vipawatanakul, Chief Executive Officer and Managing Director of KCG Corporation Public Company Limited, presided over the signing ceremony of a Memorandum of Understanding (MOU). Representing KCG Corporation were executives Mr. Thawach Dhiranusornkit , Senior Executive Vice President; Mr. Damrongkit Vipawatanakul , Deputy Managing Director of Engineering; and Mr. Monsarn Dhiranusornkit , Deputy Managing Director of Supply Chain Management. The MOU was signed with five partner companies, represented by: Mr. Tan Wei Hong (Alex), Sales and Operation Manager of Cheng Hua (Thailand) Co., Ltd., Mr. Boonthrap Tantulawat, Managing Director of Mirai MEP Engineering Co., Ltd., Mr. Nattaporn Prahatsadangkoon, Director of Kerry & Brown (Thailand) Co., Ltd., Mr. Damrong Visithwanich, Managing Director of March Utilities Co., Ltd., Mr. Phuwanon Kwanyen, Managing Director of Kinetic Co., Ltd.
(Left) Mr. Thawach Dhiranusornkit (Right): Mr. Damrongchai Vipawatanakul
Mr. Damrongchai Vipawatanakul, Chief Executive Officer and Managing Director of KCG Corporation Public Company Limited, stated that the Company's operating results for the first quarter of 2024 showed total sales of 1,785.5 million baht, representing an increase of 4.5%. Net profit was reported at 71.6 million baht, an increase of 22.5% compared to the same period last year. Dairy products generated sales of 1,085.7 million baht, accounting for 60.8% of total sales, reflecting growing consumer demand in this segment, which is expected to continue rising. Consequently, KCG aims to enhance and expand its butter and margarine production lines to boost production capabilities, while introducing innovative solutions to sustainably improve production efficiency and effectively meet consumer demand.
The CEO and Managing Director of KCG stated that KCG's current butter production capacity is 18,000 tons per year. Through this project, KCG plans to increase production capacity to 23,000 tons per year (maximum 23,261 tons per year) by 2025. The project has a total investment exceeding 217 million baht and will span 22 months, beginning in January 2024, divided into five phases.
Phase 1 involves expanding the existing butter production area of 1,284 square meters by integrating it with the previous Processed Cheese production area of 1,080 square meters, along with installing additional machinery and a new conveyor system. This will result in a completed butter production area of 2,364 square meters. Phases 2 to 5 include the addition of automatic packaging machinery and enhancements to the production line management that align with the expanded production area. Improvements will include conveyor systems and Robotic Palletizer, ensuring sufficient capacity to meet growing customer demand through 2031.
“To achieve the goal of building a Western food empire with butter and cheese growing steadily and sustainably, KCG will continue developing investment plans to expand production capacity and implement automation technology to enhance production efficiency. This aligns with one of the Company's seven corporate strategies, Production & Automation, which aims to consistently modernize and expand production capacity. Emphasis will be placed on creating new products and innovations in the butter and cheese categories, particularly healthy alternative foods that cater to modern consumer lifestyles, thereby supporting the organization's objective of achieving stable, sustainable growth and readiness for future changes,” concluded Mr. Damrongchai