JAT Holdings' new alkyd resin factory in Bangladesh begins operations

The new alkyd resin plant in Bangladesh has officially started operations. The plant was designed and built by JAT Holdings through its wholly-owned subsidiary Asia Coating in Bangladesh. This achievement marks a positive moment for JAT Holdings. The plant will help improve the group's profit margins due to improved backward vertical integration.

The new plant is designed to produce main raw material for solvent-based polyurethane, nitrocellulose, enamel wood coatings and paints. JAT Holdings is a Sri Lankan wood coatings and brushes supplier and regional paint manufacturer.

"The commissioning of our new alkyd resin plant in Bangladesh reflects our commitment to excellence in multiple areas, including product quality, manufacturing efficiency, value delivery, and social and environmental responsibility. " said Shamara Wanniarachchi, Country head and operations director of JAT Holdings, Bangladesh.

"Now, with increased backward integration, we can further control the supply chain and value chain, helping to manage costs, material usage, waste, R&D and product engineering. This will ultimately enable us to deliver exceptional value to our customers and stakeholders. " continued Wanniarachchi.

"This means we will be able to bring more cost-effective high-value products to the market while improving our export performance by exporting the remaining raw materials we produce," Wanniarachchi added.

JAT Holdings will use funds raised from a successful IPO in 2021 to set up a state-of-the-art manufacturing facility in Bangladesh in 2022, further strengthening its position in the market through its subsidiary Asia Coating.

This strategic move not only strengthens JAT's regional footprint but also enables the company to capitalize on the booming Bangladeshi furniture industry. JAT Holdings has long supported this sector through its extensive partnerships and network with manufacturers. JAT used the remaining IPO funds to build an alkyd resin plant.

This complementary investment further strengthens JAT's vertical integration. It also ensures continuous supply of quality raw materials for its paints and coatings production. This will ultimately support the continued growth of Bangladesh's export industry and its reputation for high-quality furniture.

Importantly, these developments in Bangladesh are complemented by JAT's strong R&D facilities and team in Sri Lanka. They ensure continuous innovation and product development to meet the changing needs of the market.

"JAT's state-of-the-art R&D facility plays a vital role in the development of alkyd resin formulations. The facility incorporates advanced machinery currently used by multinational resin manufacturers," said Ajith Bandara, Director, R&D, JAT Holdings.

"Our team of researchers and experts continuously push the boundaries of innovation to design exceptional products in Sri Lanka. This, combined with our multinational manufacturing capabilities, enables us to deliver the best quality at competitive prices. We are pleased to be able to further enhance our product offering and strengthen our market leadership position with the new alkyd resins plant." Bandara added.