TAGS: Polyurethane Coatings Wood Coatings
JAT Holdings officially commences operations at its new alkyd resin plant in Bangladesh on the 12th of February 2024. The plant has been designed and built by JAT Holdings through its wholly owned subsidiary in Bangladesh, Asia Coating. This achievement marks a positive moment for JAT Holdings. The plant will help to boost the Group’s margins as a result of improved backward vertical integration.
Manufacturing Raw Materials for Solvent-based PU
The new plant is designed to manufacture primary raw materials for solvent-based polyurethane, nitrocellulose, and enamel wood coatings and paint. JAT Holdings is Sri Lanka’s supplier of wood coatings and brushes and a regional paint manufacturer.
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The commencement of operations at our new alkyd resin plant in Bangladesh reflects our commitment to excellence across multiple spheres. It includes product quality, manufacturing efficiency, value delivery and social and environmental responsibility,” said Shamara Wanniarachchi, Country head and operations director, Bangladesh.
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Now, with increased backward integration, we have further control over our supply and value chains, helping to manage costs, material use, waste, research and development, and product engineering. This will ultimately lead to us being able to deliver exceptional value to our customers and our stakeholders,” continued Wanniarachchi.
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This means we will be able to introduce more cost-efficient, high-value products to the market while increasing our export performance by exporting surplus raw materials we manufacture,” added Wanniarachchi.
Ensuring Consistent High-quality Raw Materials Supply
Leveraging the funds raised through its successful IPO in 2021, JAT Holdings established a state-of-the-art manufacturing plant in Bangladesh in 2022, further solidifying its presence in the market through its subsidiary, Asia Coating.
This strategic move not only strengthened JAT's regional footprint but also positioned the company to capitalize on the thriving Bangladeshi furniture industry. It is a sector JAT Holdings has long supported through extensive partnerships and networks with manufacturers. Utilizing the remaining IPO funds, JAT set up the alkyd resin plant.
This complementary investment further strengthens JAT's vertical integration. It also ensures a consistent supply of high-quality raw materials for its paint and coatings production. This will ultimately support the continued growth of Bangladesh's export industry and its reputation for high-quality furniture.
Innovating According to Evolving Needs of Market
Importantly, these developments in Bangladesh are complemented by JAT's strong R&D facility and team in Sri Lanka. They ensure continuous innovation and product development to meet the evolving needs of the market.
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JAT's state-of-the-art R&D facility played a crucial role in developing the formulas for the alkyd resin. This facility utilizes advanced machinery currently used by multinational resin manufacturers,” said Ajith Bandara, director, Research & Development, JAT Holdings.
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Our team of researchers and specialists continuously push the boundaries of innovation to design exceptional products in Sri Lanka. This, combined with our multinational manufacturing capabilities, allows us to deliver the best quality at competitive prices. We are excited to leverage the new alkyd resin plant to further enhance our product offerings and solidify our market leadership," added Bandara.
Source: JAT Holdings