PMTA acquires exclusive distributorship for Solvay's innovative fertilizer, expects higher margins, continued market leadership

BackNov 20, 2015

Bangkok, 20 November 2015 - PMTA is proud to announce that its Vietnamese subsidiary Baconco Co., Ltd. has secured exclusive distributorship of the highly innovative and powerful "N-Protect" urea fertilizer products from Solvay of Belgium, a global leader in chemicals production. Baconco will market the products, which accelerate plant growths and reduce Urea fertilizer use by as much as 20%, in Vietnam, Laos, Cambodia and some African countries.

Mr. Sigmund Stromme, Managing Director, PM Thoresen Asia Holdings Public Company Limited (SET: PMTA), revealed PMTA's signing of a three-year agreement with Solvay of Belgium under which Baconco, a fully-owned subsidiary of PMTA, will be granted exclusive distributorship of Solvay's innovative "N-Protect" urea fertilizer products in Baconco's major markets, including Vietnam, Laos, Cambodia and a number of African countries.

Solvay is a corporate group that is a global leader in chemicals production. It makes significant contributions to research and development of high quality, eco-friendly chemical products and constantly offers solutions that have wide-ranging impacts on the chemical industry. N-Protect is one of its solutions that enhances the efficacy of nitrogen in urea fertilizers, enabling trees and plants to absorb nutrients from the urea for an extended period. N-Protect products prolong chemical reactions, promoting plant growths and saving urea fertilizer use by as much as 20%. They are especially great for rice, fruits and vegetables.

In Vietnam, we expect Baconco to sell about 15,000 tonnes of N-Protect products in 2016 and about 30,000 tonnes in 2018. For the first season (October 2015 to January 2016), after the launch, we target 6,000 tonnes. In addition, in 2016 we will introduce the products in Laos, Cambodia and such African markets as Angola, Cameroon or Madagascar," he said.

According to Mr. Stromme, the N-Protect products will strength Baconco's product portfolio in terms of quality and variety, and will increase Baconco's profit margin, and allow the company to retain its greatest market share in Vietnam and its export markets. He added that Solvay's decision to offer exclusive distributorship of the products to Baconco also shows its prominence in the agrichemical market and its vast marketing network, and all these will be translated into superior returns to PMTA, its sole shareholder.

About PMTA
PMTA, listed on the Stock Exchange of Thailand, is an internationally renowned and recognised holding company. It has 100% equity stake in Baconco, a producer and supplier of premium-grade chemical fertilizers based in Vietnam which commands a 25% share of the Vietnamese premium-grade chemical fertiliser market and has more than 130 major customers in the domestic wholesale market. Baconco maintains a network of more than 10 overseas fertilizer suppliers and exports its products to 32 countries, especially several high-growth countries in the Asean and African regions. In addition to producing and supplying premium-grade chemical fertilizers, Baconco operates warehouse rental service business, which is growing and adding its business strength and sustainability.