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The agreement was signed in Thailand in the presence of Mohannad Sweid CEO of DEPA United Group and Dr. Chalie Jangvijitkul, Managing Director of Thailand Carpet Manufacturing, who said:
"DEPA and Thailand Carpet Manufacturing share a vision in offering high end, high quality products for the upper levels of the market. Our clients recognize the value of quality and our partnership with a prestigious company like DEPA is a clear indication that our products and business practices are of international standards."
For DEPA the agreement allows it to service its clients better by being able to provide them with turnkey solutions more competitively. For companies, joining resources and business expertise opens the gateways into the markets of the Middle East, Europe and the United States and thus cement their leadership in the international carpet manufacturing and distribution business.
Thailand Carpet Manufacturing Company plans use this cash injection to bolster its production capacity to serve demand from hotels, casino and convention centers. The company intends to invest US$3.7 million (AED13.6 million) in machinery to double its production from 240,000 square meters per year to 420,000 square meters per year during the year 2007. Further investments into hand-tufted carpet production are planned to raise production by 10 percent targeting demand from the premium market.
"The main objective of this partnership is to further both companies' international expansion objectives and to realize financial and strategic synergies in the medium to long run,"
said Mohannad Sweid, DEPA United Group's Chief Executive Officer. "DEPA will press on with its expansion plans aimed at creating a situation where we can provide turnkey solutions to our customers through an elaborate backward integration strategy. At the same time we plan to add more scope and breadth into our business by extending services to a wider segment of the market in different countries globally."
During the past five years, Thailand Carpet Manufacturing Company has become more aggressive in terms of it export market strategies. The company launched offices in the USA, Europe and the Middle East targeting large buildings, shopping malls, hotels, cinemas, casinos and yachts. Previous customers include the Hilton Hotel Group, Royal Palace of Brunei, Caesar Palace Casino in Las Vegas, the Canadian Central Bank and the Bank of Canada. Fifty percent of the company's revenue now comes from its exports and is expected to rise to 65 percent by the end of 2007.
Thailand Carpet Manufacturing Company's domestic clients include The Oriental Hotel, Siam Paragon, Major Cineplex Group and SF Cinema Group.
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Posted by Anne-Birte Stensgaard, Senior News Editor
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