Tipco Asphalt (TASCO.BK) has announced that the company will be buying out its partners in Vietnam and Indonesia. The deal is valued at 2.2 billion baht. Tipco is the leading manufacturer and trader of asphalt in Thailand. The acquisition is part of the company’s long-term goal of becoming one of the leaders in the asphalt product industry in the world by 2020.
Total supply of asphalt is expected to increase by 6 million tons as a result of the buyout. The company also deals with petroleum-related products.
The acquisition will allow Tipco to distribute products in: Asia, Australia, Africa, North and South America and Europe.
An investment of 1.7 billion baht over a five-year span will allow the company to reach its 2020 goals. In total, the company sold 2 million tons of asphalt, missing its projections of selling 2.2 to 2.3 million tons. The acquisition will allow the company to expand its operations greatly.
Another $100 million (USD) will be invested to expand the company’s asphalt refinery plants in Malaysia and Kemaman, with expansion estimated to begin in 2017. Total sales items on the year are up to 1.68 million tons, with a gross profit of 2.05 billion baht in Q3 and profits of 1.45 billion baht on the quarter.