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OFFICIAL JOURNAL Complementary lighting and container glass expertise Somchai Ovuthitham, Chief Executive Officer at Thailand’s L Lighting Glass, spoke to official AFGM journal, Glass Worldwide, about the growing importance of glass container manufacture to his business, in parallel with its original lighting glass manufacturing expertise. Further expansion is planned for early 2017.

Founded in 1974, Chachoengsao- produce glass for lighting applications production and furnace operation. “We already based L Lighting Glass Co Ltd is a and continues to produce for manufactured tubes long before this co-operation but second generation family business, fluorescent, incandescent and we wanted to develop and improve our quality and currently managed by Somchai automotive lamps. Approximately technology” Somchai Ovuthitham explains. Having Ovuthitham,Vieglass was represented Chief Executive last year at theOfficer. 39th ASEAN Glass80% Conference of output by Nguyenis exported Huy Thang to and40 Tran Quoc Thaisuccessfully (centre, front established row). its own expertise, however, His father, Udom Ovuthitham was different countries as far afield as the the Thai glassmaker set out on its own again and now responsible for the company’s USA, Europe, China and India, as well manufactures its own production equipment, including creation and focus but at 90 years of as South East Asia. Some 20 million mandrel drivers, drawing machines and cutting equipment. age,Addressing he now enjoys a well-earned automotive challenges bulb shells alone are “In the field of lighting, our technology is world class.” retirement. The company employs exported every month, to the likes of 700 people in total, including Mr Philips in China and India, Osram in NEED FOR DIVERSIFICATION Somchai’sin oldestVietnam and second Korea, Europe and China and General The international lighting industry’s evolution towards LED daughters, who maintain the family’s Electric in the USA. components and away from the use of glass has led to growingAs exclusive glass industry officialheritage. A journalEmploying of the the Danner ASEAN continuous Federation the closure of of other Glass dedicated Manufacturers glassworks in South East third daughter is soon to complete tube forming process, the company Asia but L Lighting Glass has continued to remain flexible her(AFGM), education and Glass will be joiningWorldwide the enjoyed spoke a technical to co-operationThang Pham toabout meet customer initiatives requirements, to while reposition maintaining family’sVietnam’s sister chemicals glass business. industry agreement in the with face Nippon of Electric difficult Glass profitability.conditions. Because the overall lighting business is As its name implies, L Lighting from 1981 to 1998, involving the shrinking, however, it was recognised that some form of GlassAccording was tooriginally the forecasts set up of to sharingand standardise of technology the operation for tubing norms processingdiversification technology. was necessary There foris a the focus glassmaker on producing to international organisations, Vietnam of international common standards glassmaintain items long-term of large growth. size and In thickness; 2014, the soundproofing, company took the achieved GDP growth of 5.8%-6.2% and integration commitments. M&A energybold step saving to enter insulation, the glass safety container glass, businessglass with and self- has in 2015. With a consumer price index activity will increase, particularly in the cleaningbeen making capabilities bottles suitablefor the lastfor thethree hot, years. humid and rainy below 7%, the export industry will field of real estate, manufacturing and climate“Our of traditional Vietnam; businessdecorative was glass; going and down glass but blocks. we In realise many important breakthroughs sales of consumer goods, banking and 2015,had engineering Vietnam’s andglass management industry benefited teams fromin place, a recovery by achieving more active development textiles, mechanical engineering etc. inso thein addition real estate to lighting, market andwe nowlower make oil prices. bottles Prices for such were momentum from the FTAs in which reducedsectors as and beverage, glass usage energy increased drinks andto reduce sports stock drinks” levels. Vietnam is participating, both now FLAT GLASS SECTOR Mr Ovuthitham confirms. After just three years, the and in the near future; the ASEAN Under Decision 1469 / QD-TTg of container operation is already the larger business economic community, TPP, Vietnam the Prime Minister, Nguyen Tan contributor and is growing at a fast pace. FTA - South Korea and Vietnam – and Dung, approving the master plan on Two furnaces are maintained for lighting glass, with the Customs Union Russia-Belarus- the construction materials industry, another two converted to accommodate the needs of Kazakhstan are the most significant demand for architectural glass in Customers recognise the quality of bottles One of the 12-section triple gob IS machines producedof these. by L Lighting Glass. Vietnaminstalled in 2014is forecasted (image: Heye atInternational some 80 GmbH). Total exports increased by 10% million m2, increasing to 110 million last year, representing a deficit of m2 by 2020. However, demand in about 5%; the CPI growth rate 2015 surprisingly met the total design stands at approximately 5%; total capacity of flat glass production social development investment plants, which is approximately 180 accounts for 30%-32% of GDP; and million m2/year. But the orientation 1.6 million jobs have been created. from now until 2020 will be no new According to the National Finance investments to expand production Supervisory Committee (NFSC), facilities that produce ordinary glass. economic growth in 2015 continued Projects to produce special glass only the trend of recovery and growth will be permitted by Prime Minister’s targets of 6.2%. Meanwhile, the approval. macro-economic environment has Instead, Vietnam encourages conditions to maintain stability, in-depth investment and technological especially with regard to the inflation improvements to reduce the control target. consumption of raw materials and The banking system is still facing fuel; improve quality and diversify pressure to reduce bad debt and products, reducing environmental SomchaiHollow glass Ovuthitham manufacturers with IRIS in InspectionVietnam face machines difficult CEO competition Jean-Luc Logel from at the Somchaicross-ownership, Ovuthitham with improve AFGM dignitaries governance at the 40th pollutionASEAN Glass and Conference investing in Thailand in glass last October. 40thimported ASEAN products. Glass Conference. IRIS is a key supplier to L Lighting Glass Co Ltd.

2426 GLASS WORLDWIDE > issue sixty ninefour 20162017 Subscribe online at www.glassworldwide.co.uk FOCUS ON THAILAND

The traditional activity of L Lighting Glass is to produce glass for many different lighting applications.

View of the cold end (image: Heye International GmbH). container production technology. According to Somchai Ovuthitham, adapting the furnaces was no problem but significant investments were required for the production although some specialists are still AFGM lines. “We knew we needed first class equipment, so we retained on a consultancy basis to According to Somchai Ovuthitham, the invested in technology and expertise from Heye assist with the maintenance of 40th ASEAN Glass Conference in Hua International. It was my first time to start a business using mechanical and electrical equipment. Hin was very successful last October, these processes, so we installed top quality machinery.” “Our strength is that we are despite challenging circumstances. The initial transition to container production was very independent and can supply Following the tragic car bombings challenging, with an inexperienced team facing very everyone” says Somchai Ovuthitham. nearby only three months before the different technologies and production requirements. “We are not tied to anybody and I can conference, the organising committee “It wasn’t just me that was inexperienced in container commit 100% to every customer.” worked very hard to ensure the security manufacturing, it was our whole team.” of attendees and their efforts secured a With the help of key suppliers, 40 European production FEDERATION INVOLVEMENT very impressive attendance. “Then, just experts were recruited and more than 50 local employees Mr Somchai has been involved with days before the conference, came the were sent for training at glass plants in Germany and Italy. the Glass Manufacturers Industry Club tragic news of the passing of King “We could not use manpower to pack, so we invested in at the Federation of Thai Industries Bhumibol Adulyadej of Thailand and technology from Zecchetti and for inspection equipment, (GMFTI) for 12 years, serving as that changed everything. The we invested with IRIS inspection machines” Mr Ovuthitham General Secretary for four years and committee worked tirelessly to explains. “This project represented a huge investment, then Chairman for another four. change the programme accordingly especially because we were not known in the market.” “Now I serve in an advisory capacity to show respect.” The first year was extremely challenging because the because I feel the committee should A good series of technical market dynamics encountered were very different and stay young, although I offer support presentations was arranged, with many potential customers needed to build trust in the fledgling and help in any way I can.” offers of speakers. “The possibility for operation’s production quality. Producing was initiated just Despite having just 18 members, networking is also very useful to meet six months after deciding to proceed but was soon halted the GMFTI maintains separate all key ASEAN customers and for 10 months because of a lack of orders. In July 2015, environmental, energy and raw international suppliers. For example, however, the furnaces were restarted and have been materials teams to cover every key this was my twelfth ASEAN Glass operating at full capacity ever since, with plenty of orders. aspect of glass manufacture and is Conference and when we decided to All production is currently sold to local customers. also very active in the regional AFGM diversify into bottles a few years ago, set-up. “Everybody needs to be I already knew everybody because of PRODUCTION EXPANSION active and join in.” these conferences, even though we Business has been so good in fact that the company’s GMFTI falls under the umbrella had not previously been active in the glass container activities are to be expanded again in early of the Federation of Thai Industries, industry.” 2017, when additional equipment will be introduced, where Somchai Ovuthitham is During the plenary session at the including two Bottero IS machines. currently Vice Chairman of the energy 40th ASEAN Glass Conference, Before the expansion, the company was producing 350 committee. He has campaigned for members from all participating tonnes/day from dedicated white flint and amber furnaces over 10 years for the reduction of associations voted unanimously for but the addition of a Bottero IS machine to the amber tank energy and gas prices and has been Glass Worldwide to continue as and the introduction of an IS machine to one of the lighting successful. “Our costs were exclusive official journal of the AFGM. glass furnaces will help to increase container production by previously higher than Malaysia and “Glass Worldwide has done a really good a further 100 tonnes/day. “With lighting glass demand Indonesia but we are now cheaper job for all AFGM members and there continuing to fall, this capacity increase gives us an than Indonesia and I am proud that was only one magazine the committee opportunity to move more towards bottles.” we can influence the interests of wanted to continue with as a partner” The majority of customers have already committed to industry and its members.” Somchai Ovuthitham concludes. another year of orders and are keen for the glassmaker to Mr Ovuthitham believes the Asian expand capacity further. “Although we have the potential Economic Community (AEC) provides to do so, in the short-term we need to take stock of the Thailand with opportunities for FURTHER INFORMATION: huge investments we have made before committing to expansion “It’s a very good L Lighting Glass Co Ltd, more!” Mr Ovuthitham suggests. After three years of opportunity for all GMFTI members to Chachoengsao, Thailand tel: +66 38 828513-18 training and experience, L Lighting Glass has developed a expand into other markets, reaching email: [email protected] workforce of skilled container producers. Only one of the 600 million people in ASEAN countries web: www.legthai.com 40 original European specialists has been retained, compared to 70 million previously.”

28 GLASS WORLDWIDE > issue sixty nine 2017 Subscribe online at www.glassworldwide.co.uk