Thailand-based melamine producer Srithai Superware has announced plans to invest THB550m ($17m) to install new machines and moulds for its plastic products at factories in Thailand.

The company also plans to increase its production capacity of preformed products and plastic closure products by 20% – 25% annually to 1,200t and 500t – 600t respectively.

Along with the investment in its packaging division, the company will spend THB350m ($11m) expanding its melamine business in Thailand and melamine and plastic closure products in Vietnam.

The investment will support the growing demand of plastic packaging and melamine products both domestically and internationally.

Srithai further plans to set up a new company in 2013 to look after its PET bottle blowing plant, and wants to expand its business in Vietnam to cope with price increases. A future investment in India has also been considered.

The company’s 2012 sales are expected to rise by 17% to THB7.8bn ($246m) from 2011, with THB5.65bn ($178m) coming from the local market.

Of total sales, THB4.8bn ($152m) will come from plastic products, THB2.445bn ($77m) from melamine products and THB555m ($17m) from direct sales.