Srithai, PTTCH plan "water lillies"

       SRITHAI'S PROJECTED 2009 REVENUE +5%B5.1bn
       Srithai Superware Plc (SITHAI),Thailand's largest plastic houseware producer is diversifying into products to combat evaporation in collaboration with a foreign innovator and PTT Chemicals,the country's largest olefin maker.
       The fear of water shortages is rising with global warming and the accelerated evaporation of natural water, creating demand for tools to preserve water resources, said Srithai chairman Sanan Angubolkul.
       His company plans to produce "water lillies",which are pro-+5%ducts for preserving ponds invented by an Australian company that Srithai declined to name.
       Research has almost been concluded for the water lilies, which should be commercially available from 2010, he said.
       "Simply speaking, water lilies are plastic modules that the user needs to patch together as a sheet to cover the surface of ponds or reservoirs," said Mr Sanan.
       The water lillies will be made from a special formula of high-density polyethylene (HDPE) created in collaboration with PTTCH to meet the requirement of Srithai and the Australian inventor.
       "We gather knowledge from each other to make something new to meet the new demand. With co-operation, development will be faster and cheaper as we can pool our resources together,"said Mr Sanan.
       The United States and Australia are showing enthusiasm for the product as they are highly concerned about future water shortages, he said.
       But other countries with a tropical climate could also benefit from the new product, Mr Sanan added.
       PTTCH will develop the new HDPE to float while protecting water from heat and controlling water movement and shore erosion.
       The project is expected to get patents
       for its materials and design. But the business model is yet to be established as the project requires huge capital investment.
       Srithai will invest mainly in advance,spending 800 million baht this year and another 400 million next year.
       "We have to focus on technology at a time of economic slowdown. When the global economy returns to normal,we will be more able than our rivals to meet our clients' demands," said Mr Sanan.
       Srithai expects its revenue this year to rise 5% to 5.1 billion baht from 4.92 billion last year due to strong demand in the packaging sector.
       Shares of SITHAI closed yesterday at five baht, unchanged, in trade worth 5.48 million baht, while PTTCH shares were also unchanged at 66 baht in trade worth 202 million baht.