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Product Groups

  • Business Furniture

East Coast Furnitech Public Co., Ltd. (“the Company” or “ECF”) is a manufacturer and distributor of furniture made of particle board and rubber wood, foil paper, dried rubber wood using as a raw material for furniture manufacturing, a distributor of rubber wood furniture manufactured by ECF and of wood furniture manufactured by other domestic and overseas as well as a service provider in cutting the pasting edge (PVC) as raw material for particle board furniture.

Main 5 products of ECF started from the beginning of business operations as a rubber wood sawmill in which the rubber wood shall be dried and lumbered to rubber wood plate as a raw material for ECF’s furniture manufacturing while some portions shall be sold to other furniture manufacturers or general customers. For particle board which generates main revenue for the Company, raw materials shall be purchased from suppliers who are not all with connected transactions.  All purchased particle board shall be finished with foil paper which was manufactured by the Company.  Most foil papers shall be utilized internally with only some portions for sale.  Finishing particle boards shall then enter the manufacturing process.  Moreover, ECF also imported some furniture for sale in our 18 showrooms of ELEGA (as of 31 December 2017). 

 

Details are as follows:

 

  1. Dried rubber wood

Rubber wood is a wood with many physical qualities similar to teak such as beautiful pattern, dyeable, easy to decorate on wood, light weight and cheaper price when compared to other types of wood used to produce furniture. With such good properties, rubber wood is popular among people around the world in short time under the name of “White Teak”. Presently, rubber plantation trees are generally harvested for wood after they complete the latex producing cycle, when they are old. After the latex yields become extremely low, the trees are then fell, and new trees are usually planted in accordance with the natural cycle of rubber tree farmers.  According to Office of the Rubber Replanting Aid Fund’s regulations, rubber farmers must request for approval to cut rubber trees down and be approved by the Office of the Rubber Replanting Aid Fund before taking the rubber wood into lumbering process. The process starts from sending woods to sawmill for chopping them into desired size, then dipped into soluble wood preservatives, causing high water contents in wood and requiring to adjust the moisture level to be balanced with weather condition by drying to maintain wood shape to prevent the problem of wood stretch or shrinkage which may cause the problem of cracking, splitting or warping, such problems shall make product damaged. Additionally, the decrease of wood moisture will minimize the opportunity of fungus. Therefore, lumbered rubber wood is necessary to have moisture level which is appropriate to the standard criteria, then it can be further used to produce furniture.

Lumbered rubber wood is an important raw material for rubber wood furniture manufacturing and ECF has complete lumbering process before supplying them into the production process of rubber wood furniture.

The first step is purchasing the rubber timber for sawing before having them dried. ECF plans to purchase the rubber wood in each cycle to avoid the shortage which may cause interruption in the manufacturing process.

Experience and expertise are significant in the manufacturing process, starting in the sawmill, timber will be sawn at a specific size then impregnated by water solution then adjusted the moistness by drying to avoid the shrinkage or stretch which may cause cracking, splitting or warping.  Moistness reduction with high pressure also protects the wood against fungal and insect attacks so that the rubber wood is standardized and ready for furniture manufacturing. Sawing rubber wood is different than other woods as the timbers are usually curved as well as there are many joints and flaws so automatic sawing cannot be applied.

95% of lumbered rubber wood shall be forwarded to ECF’s manufacturing process while the remaining shall be sold to general customers or small rubber wood manufacturers.

  1. Rubber Wood Furniture

Rubber wood furniture is strong furniture as it is built from real wood.  Main raw materials are rubber and other woods which are 35% of the cost structure but this percentage varies according to the market price of rubber wood.

Due to its durability, strength and beautiful pattern & line, dyeable and easy to decorate with properties suitable to the function which need durability to environment or application outside the building, rubber wood furniture is popular for outdoor usage or customers who live in fluctuating climate areas.  When compared to particle board furniture, rubber wood furniture’s price is more expensive due to raw material price and the trend to use real wood furniture, therefore, the popularity of rubber wood furniture is for niche market only, it is not popular big group of consumers. Such niche target group will consider the appropriateness of properties in using rubber wood furniture and its niceness, additionally there is no any other products with similar properties to suitably replace this rubber wood furniture.

       3. Particle Board Furniture

This is modern furniture with particle board as the main raw material at 50% of cost structure while the foil paper is approximately 10%. 

Particle board is made of crushed rubber and other woods then pack with urea formaldehyde resin.  The up and down layer is fine wood chips while the middle layer is rough wood chips.  Consequently, the particle board cannot be attached with nails or surface or edge decorated.  Most particle board size is 4 x 8 feet with the thickness from 6 – 35 millimeters. 

Particle board is the lightest board in fiber boards and with less strength to MDF board and other hard woods.  Moreover, particle board will expand easily when exposed to the moistness.  However, particle board is popular for interior usage as it has light weight, cheap and easy to move.  In addition, particle board is environmental-friendly as no hard woods in the forest shall be cut down.

Particle board manufacturing process is easier as most process is done via machines and it requires less time when compared to hard woods furniture manufacturing. Therefore, the lower production cost is the main advantage. 

If comparing the process of hardwood furniture or real wood furniture manufacturing, it will consist of sawing, dipping of preservative, cutting, assembling, polishing, painting, and wood coating, each process requires a lot of workers for production to obtain more elaborate and time-consuming work in each production step. The Company then focuses on the increase of production capacity for particle wood furniture by adding modern semi-automatic machine to the production in order to reduce labor costs, increase efficiency and effectiveness to the production.

      4.Furniture sale via showrooms

The Company operates its business of integrated furniture manufacturing and distribution with the Company’s own brand by selling via showrooms which are rented inside Index Living Mall and Home Pro. As of 31 December 2017, ECF comprises of 18 rented areas in Index Living Mall and Home Pro in the brand “ELEGA” and this brand is rubber wood furniture manufactured by ECF plus real wood furniture purchased from domestic and overseas. These products are categorized as follows:

  1. Dining Set
  2. Living Room
  3. Bed Room

Products sold in the showroom cover the products manufactured by the Company such as rubber wood furniture and real wood furniture purchased from domestic and overseas. The furniture sold in the showroom is mostly made from real wood. The proportion of products manufactured by the Company and the proportion of products purchased for sale is approximately 40% and 60%, respectively.

       5. Foil Paper

ECF produces and sells foil paper which is used in coating the particle board for fine looking and ready for furniture manufacturing.  Foil paper can be designed in various paints such as hard wood, cartoon, graphic or by order.  The hard wood style is suitable for fiber board due to easy production with low cost although its weaknesses are low resistant to moisture. However, its properties is suitable for some functions which are not required of durability. Therefore, particle board furniture’s price has more advantage than general hard wood furniture.

All particle board purchased from manufacturers shall be coated with foil paper in ECF’s factory for cost reduction when compared to ordering foil paper from outside. In addition to the use in the production process of the Company, ECF also sells foil paper to general customers and some shall be sold through VV-Décor Co., Ltd (VV-Décor) as ECF’s subsidiary held by ECF total 99.95% of registered capital. At present, 40% of foil papers are sold to general customers.

 

 

  • Retail Shop Business

The Company established an additional subsidiary, namely, ECF Holdings Company Limited (“Subsidiary” or “ECFH”) which the Company held initial proportion of 51.00% of shares as of 31 December 2015, later in January 2016, the Company increased its investment to be 75.00%, such subsidiary was registered and established on 23 February 2015 and operates the business of holding company as well as invests in retail shop. The Company has an initial registered capital of 1,000,000 Baht (One Million Baht Only), divided into 10,000 ordinary shares (Ten Thousand Shares) with a par value of Baht 100 each (One Hundred Baht). After that, the Company increased its registered capital from 1,000,000 Baht to be 10,000,000 Baht or 100,000 ordinary shares with a par value of Baht 100 each. Details of shareholders as of 31 December 2017 are shown as follows:

 

No.

Shareholder Name

Shareholding ratio

No. of shares

1

East Coast Furnitech PLC.

75%

75,000

2

Mrs.Siriluck Nukcharoen

15%

15,000

3

Miss Napaporn Sooppawong

10%

10,000

 

Total

100%

100,000

 

 

Presently ECF Holdings Co., Ltd. operates its business in retail shop, namely, Can Do, which is the retail shop originated in Japan. ECFH contacted to buy franchise from Japan to operate the business in the same style as 100-yen shop in Thailand, Can Do Shops sell products with only one price-60 Baht.

The concept of Can Do shop in Thailand is to provide good quality of products imported from Japan and sell them at only one price (60 Baht), and over ten thousand product types such as home devices, beauty products, food container, cleaning tools, stationery, handicraft, electronic tools, boxes, basket, festive products, etc.

 

 

  • Alternative Energy Business

  • Biomass Power Plant

 

Presently, ECF Power Company Limited ("ECF-P"), as a subsidiary, invests in SAFE Energy Holdings Co., Ltd. (“SAFE”) by holding 33.37% of total shares of SAFE.

 

At present, SAFE has invested in many companies related to biomass power plant business as following details:

  1. Prize of Wood Green Energy Co., Ltd. (“PWGE)

 

At present, SAFE has acquired 99.99% of the total issued share capital of PWGE, it currently operates a biomass power plant with the capacity of 7.5 megawatts, located at Waeng District, Narathiwat Province. Its plant uses biomass from para rubber tree as fuel for production, it will produce and distribute power to government sector in accordance with the policy on promotion of power generation and utilization from alternative energy by the Energy Policy and Planning Office (EPPO), Ministry of Energy and it is supported by the government in the form of power purchase in Feed in Tariff (FiT) system including tax privileges from Board of Investment (BOI). PWGE power plant project has generated revenue from Commercial Operation Date (COD) since June 27, 2017.

PWGE operates its business with the vision and mission to create green energy by advanced technology along with the development of forestry for green economy on the concept of Cullelose-Based World

PWGE power plant located on land which one side is adjacent to the 4-lane main road on Highway No. 4057 and another side is adjacent to Golok River, the river is 30 meters wide and provides water for using throughout the year. The front of the land is a high hill and the land is about 3 meters above the road, which will reduce the risk of floodin.

It is also located near the source of raw materials for fuel used in production within an inner radius of 30 km., a middle radius of 60 km. and an external radius of 100 km. This location will reduce the risk of raw materials in the future. Additionally, it is away from Kelantan state, Malaysia for only 30 km. where there are many sawmills and wood chips plant being located. There are more than 30 sawmills located at the border of Malaysia, most of them will produce and export lumbered woods to Thailand through the border of Su-ngai Golok, the location of the power plant helps to gain advantage in transportation costs and reduce the risk of future oil costs.

The factory’s location is opposite to the village of Mai Khao where there are Thai people who are Buddhists, consisting of more than 320 households. Waeng District has no risk of terrorism and it is the area that safer than other areas.

       

         2.SAFE Biomasss Co., Ltd. (SAFE-B”)

 

Presently, SAFE owns 99.99% shares in SAFE-B, SAFE-B operates a wood shredder business to supply wood chips to the PWGE power plant. SAFE-B rents land inside the PWGE power plant for business use. The internal area of the wood chopping plant and fuel storage building including wood shredders and belt conveyor is located on the total area of 6,480 square meters.

The SAFE-B wood chopping plant has an installed production capacity of 60 tons per hour, the number of days used in the production of wood chips is 8 hours per day. Presently, the production capacity to support the fuel for PWGE power plant is equal to 12.12 tons per hour. In terms of remaining installed production capacity, it will be used to produce wood chips for supporting other power plant projects which may be added in the future and produce wood chips for general companies located nearby which have demands.

 

         3.Bina Puri Power (Thailand) Co., Ltd. (“BINA”)

 

Presently, SAFE holds the proportion of shareholding in BINA for 49.00%, BINA operates biomass power plant business with gasification system. At present, BINA enters into two Power Purchase Agreements wth the Provincial Electricity of Authority (PEA) consisting of 2 projects. One project is located in Long District, Phrae Province and another project is located in Sung Men District, Phrae Province, both are 1.0-megawatt capacity.

At present, the project is under construction and it is expected to generate revenue from commercial electricity distribution for Phase 1 in Long District within the first quarter of 2018 and Phase 2 in Sung Men District in December, 2018.

 

  • Solar Power Plant

 

In 2015, the Company registered and established the indirect subsidiary in Japan, namely, ECF Tornado Energy Godo Kaisha (“ECF Tornado”), to support the investment expansion in Japan for solar farm project with 1.5 MW of approximate installed production capacity. ECF Holding Company Limited on behalf of the subsidiary holds 51% of total shares. Later, in September 2016, ECF Holding Co., Ltd. decided to sell invested asset in ECF Tornado and presently, ECF Tornado completed the procedure of winding up registration since last 22 February 2017.

After the business restructuring through the establishment of ECF Power Co., Ltd. as an investor in the renewable energy business, ECF Holdings Company Limited ended its role as a subsidiary for the investment in energy business. Presently, it operates only one business in Can Do retail shops in the form of one-price shop.

Soalr Power Plant Project sized 220 megawatts in Myanmar

During 2017, the Company expanded its investment in solar power plants with the total installed capacity at 220 MW and has a capacity of 170 MW for Green Earth Power (Thailand) Co., Ltd. ("Minbu Power Plant Project" or "GEP") located in Minbu City, Magwe District, Republic of the Union of Myanmar ("Myanmar"). ECF Power Co., Ltd. ("ECF-P"), a 99.99% subsidiary of the Company, invested to buy shares of this project in the portion of 20%, the Company purchased the existing ordinary shares of GEP for 51,512 shares or representing 20% of GEP's total paid-up shares, as approved by the Extraordinary General Meeting of Shareholders No. 1/2017 held on 31 May 2016, with value of USD 9 Million. The total value of the Minbu power plant project is USD 292.62 Million, with a debt to equity ratio of 65: 35. Therefore, ECF-P has the obligation to increase its capital in accordance with the shareholding proportion at 20% or USD 20.22 Million.

It is expected to start generating revenue from commercial electricity for 50 megawatts, which is the first phase within the third quarter of 2018, from all four phases which will be gradually constructed over a period not exceeding 4 years or by 2021.

GEP has one subsidiary, namely, GEP (Myanmar) Co., Ltd. ("GEP-Myanmar"), which is a sole investment in GEP-Myanmar. The objective is to operate business in developing and managing Solar power plant project in Minbu.

GEP-Myanmar entered into the Power Purchase Agreement (PPA) with Electric Power Generation Enterprise (“EPGE”) (previously, Myanmar Electric Power Enterprise) which is an organization under the Ministry of Electricity and Energy of Myanmar. Main content of agreement is to develop, construct, seek for fund source, manage and administer, maintain and transfer of business, EPGE will purcahse electricity from the solar power plant project with install production capacity of 220 MW or the ratio of maximum power purchase at 170 MW, the plant is located in Minbu City, Magwe District, Myanmar, for 30 years from the Commercial Operation Date (“COD”) of the Phase 1 project from total 4 phases. The rate of power price is fixed at 0.1275 USD per unit throughout the term of PPA including the renewal of PPA which may be occurred. The power generation will be divided into 4 phases based on the maximum ratio of power geenration which will be generated in each phase as follows:

Phase 1 Maximum trading ratio: 40 MW from installed production capacity of 50 MW.

Phase 2 Maximum trading ratio: 80 MW from installed production capacity of 100 MW.

Phase 3 Maximum trading ratio: 120 MW from installed production capacity of 150 MW.

Phase 4 Maximum trading ratio: 170 MW from installed production capacity of 220 MW.

The Minbu Power Plant Project is located at the north-west of Nay Pyi Taw Capital City about 150 kilometers or 199 km by car for about 4 hours. The project area approximately 836 acres (equivalent to 2,114.48 rais) is located on the leased area, which is sufficient for the construction of all 4 phases of Minbu power plant project, the term of lease right for this area is equal to or more than the term of Power Purchase Agreement. The leased space of 700 acres is located inside AVA Capital Trading Company Limited ("AVA Capital") and this area is under the supervision of Ministry of Agriculture, Livestock and Irrigation (MOAI). GEP-Myanmar will lease from AVA Capital but the lease right of 136-acre space will be under GEP-Myanmar. Such area is under the supervision of the Ministry of Natural Resources and Environment (MNREC).

 

Technology used for Power Generation

The Minbu Power Plant Project is a solar power plant project that utilizes solar cell technology or photovoltaics method which directly converts solar energy to be electricity by using solar cells or photovoltaic cells (PV) and major equipment for production process as follows:

  1. Solar Panel
  2. Inverter
  3. Transformer
  4. 230 kV Substation Equipment

When sunlight falls on solar panel, it will produce electricity carrier to generate DC Power, after that, solar energy in the form of DC Power will be transmitted to an inverter that converts DC Power to be AC Power. Such AC Power will be passed to the transformer to increase the voltage to the appropriate level for the power plant which will supply power into transmission line of national grid line. In this project, the AC Power from the inverter will be gathered by 33 kV-sized transformer, switchgear and distribution systems. Such electric current will be increased of voltage to be 230 kV by four 230 - 33 kV-sized step-up transformers to supply power into transmission line of national grid line. The construction of main line of 1.3 mile (or 2.1 km) is completed and is connected to the national grid line.


15 May 2018

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