MD Message
PM Thoresen Asia Holdings Public Company Limited

The major focus of PM Thoresen Asia Holdings Public Company Limited (PMTA) over the past year has been the management of our investment in Baconco Co, Ltd., a well-established agrochemical company in Vietnam, headquartered in the Phu My I Industrial Park about 70 kilometers south of Ho Chi Minh City.

The agricultural sector has been one of the primary drivers of Vietnam’s entire economy. Nearly ten million tons of chemical fertilizers are consumed annually and demand continues to expand, providing many opportunities for Baconco and fueling its high-growth potential.

Founded in 1995, Baconco has become Vietnam’s leading producer of premium quality chemical fertilizers, under the “Stork” brandname. Renowned among its target customers, Baconco now enjoys a 25 percent share of the high-end fertilizer market; it operates a well-established national network of 130 wholesalers. Distribution to customers directfrom the factory in the South as well as from warehouses in Qui Nhon for the Central, and Haiphong for the Northern Vietnam.The company exports to 32 nations which include the fast-growing countries in the ASEAN and African markets.

In August 2014 open a new and modern granulation production line which increased Baconco’s annual production capacity from 350,000 tons to 450,000 tons.In additionthe company continuouslydevelops new successful fertilizer solutions tailored to individual customer requirements.

Managing its facilities for maximum gain, Baconco has also leased presently excess warehouse space to tenants needing that capacity. The company has three well-managed warehouses with a total floor space of 31,800 square meters. Thewarehouse leasingscheme is a supplementary business that enhances Baconco’s cash position. Being strategically located in a leading, full-service maritime and transportation hub, this rental space is fully occupied and expected to remain so.

Baconco has generated positive profits for PMTA each year. In the fiscal year ending September 30, 2014, the company’s gross revenue from agrochemicals and warehouse leasing totaled THB 3.192 billion, with net profits of THB 345 million.

The company represents a clear and exciting demonstration of PMTA’s determination and commitment to invest in promising, high-growth-potential businesses, a commitment that will be greatly enabled by the firm’s listing on the Stock Exchange of Thailand and will ensure positive returns to its shareholders and investors for years to come.

Sigmund Stromme
Managing Director