Contract Manufacturing Business is regarded as another important service business of the Company. This provides research service to develop formulas and procure various raw materials and packaging to manufacture products as requested by clients. The Contract Manufacturing Business is categorized into two types:
1. Full Service Type: The Company invents formulas and procures raw materials, packaging and manufactures products in accordance with the plan that clients require and delivers them at an agreed delivery point.
2. Partial Service Type: The client provides the formula for the product and all the raw material or in part and/or packaging to the Company to manufacture the product in accordance with the plan that clients require and deliver the products at the agreed delivery point.
The Company is well accepted among leading beverage brands, both domestic and international. Currently, the Company provides original equipment manufacturing services to more than 30 large clients in this business. But since the situation of COVID-19 in the recent past has affected the world economy and also Thailand economy; especially in the beverage business in the forms of sealed containers such as fruit juice, tea, and coffee; sales have slowed down, decreased significantly, and fluctuated rapidly. Therefore, the Company has adjusted the strategy to be more flexible, to adapt to the uncertain situations, and to be able to respond to market changes in a timely manner. Moreover, there were also adjusted strategies to reduce the costs of production, raw materials, and packaging; to plan for the appropriate manufacturing; and to expand the products that match the market trends.
This business includes Abico Dairy Farm Company Limited, a subsidiary of the Company, which has focused on the business of contract manufacturing of ready-to-drink UHT milk, pasteurized milk, and pasteurized fruit juices for other companies to sell in the market. The target clients of this subsidiary are those who do not have their own production base and those whose production capacity is not enough to meet the market demands.
The Company’s Manufacturing Plant
The Company has three manufacturing plants in two countries, Thailand and Vietnam. The details are as follows:
1. A manufacturing plant in Thailand is located at the address: 26/1, Entrance Road to Sam Phran District, Yai Cha Subdistrict, Sam Phran District, Nakhon Pathom Province, with a total area of 36 rai that produces canned fruit and various beverage products such as canned coffee, fruit juice, vegetable juice, canned beverages, UHT boxes, and PET bottles, etc. The production capacity is approximately 300 million liters per year.
2. A manufacturing plant in Thailand is located at the address: 333, Moo 5, Klang Dong Sub- district, Pak Chong District, Nakhon Ratchasima Province 30320, with a total area of 55 rai that produces UHT milk, pasteurized milk, and pasteurized fruit juice. The production capacity of about 177 million liters per year.
3. A manufacturing plant in Vietnam is located at the address: Lot C21/I, Street 2F, Vinh Loc Industrial Park, Vinh Loc A Commune, Binh Chanh District, Ho Chi Minh City, Viet Nam which fruit juice and green tea in PET bottles, carbonated beverages in plastic bottles, etc. The production capacity of approximately 300 million liters per year.