The Company recorded an increase in sales and sales volume for the year 2016. Since, the material prices were decreased as well as the precast concrete wall factory was in the process of ramping up, thus could not produce to its full capacity. As such, the company’s production costs increased, and overall results could not reach the target. Nevertheless, the Company has continued its business expansion in production capacity to meet the rising demand of its customers. Construction of a factory for manufacturing and distributing PC Wire/ PC Strand will backwardly integrate our supply chain to cover the main raw material production of PC Wire/ PC Strand, which is used to produce many of our products, thus reduces the production costs significantly. The company also invested in the joint venture company to build factory of a manufacturing and distributing structural steel products under the name of Millcon Thiha GEL Ltd, located in Myanmar. This will help the Company increase its distribution channel of our products to neighboring countries.
In 2017, the Company consistently determines to further expand the business with the policy to expand into an integrated enterprise by seeking and working with allies; those leading enterprise from each sector with strong capital and solid capability for both local and overseas partners. The Company believes that such collaboration will augment our potential and support our existing business to better fulfill the demand and expectations of our customers. Furthermore, it will fortify the Company’s competitiveness and reinforce our business strengths moving forward.
With new and ongoing government investments into infrastructure projects, for the overall industrial plan of 2017, it is foreseeable that the construction material price would rise. Private sector’s businesses would largely improve, including property development, industrial factories and commercial buildings, which lead us to strongly believe that our business operation will be imminently recovered. In addition, strategic policies of our management team focus on reducing costs and expenses of production. Coupling with highly efficient management, increase in production capacity, reliable quality control process, minimization of defective products, and development of our employee’s skills and knowledge will contribute to the Company’s success in achieving and exceeding its targets.
Chief Executive Officer