Achieves Key Milestone as Operations Commence at its Alkyd Resin Plant in Bangladesh

JAT Holdings PLC, Sri Lanka’s market leader in wood coatings and brushes, and emerging regional paint manufacturer, marked a key milestone on the 12th of February 2024, with the official commencement of operations at its new Alkyd Resin Plant in Bangladesh. The plant has been purpose-designed and -built by JAT Holdings PLC, through its wholly-owned subsidiary in Bangladesh, Asia Coating (Private) Limited. This achievement marks a positive moment for JAT Holdings PLC, as its new Alkyd Resin Plant will help to boost the Group’s margins as a result of improved backward vertical integration. The new plant is designed to manufacture primary raw materials for solvent-based polyurethane, nitrocellulose, and enamel wood coatings and paint.

Operations at the new plant officially commenced amidst a special launch ceremony to mark the occasion. The ceremony was attended by Shamara Wanniarachchi, Country Head and Operations Director - Bangladesh, Ajith Bandara, Director - Research & Development at JAT Holdings PLC, Sudath Silva, General Manager – Human Resources at JAT Holdings PLC and Tazul Islam, General Manager - Imports & Admin at Asia Coating (Private) Limited. Several local dignitaries and other officials from JAT Holdings PLC and Asia Coating (Private) Limited were also in attendance.

Discussing the significance of this achievement, Shamara Wanniarachchi, Country Head and Operations Director - in Bangladesh commented, “The commencement of operations at our new Alkyd Resin Plant in Bangladesh reflects our commitment to excellence across multiple spheres, including product quality, manufacturing efficiency, value delivery, and social and environmental responsibility. Now, with increased backward integration, we have further control over our supply and value chains, helping to manage costs, material use, waste, research and development, and product engineering, which will ultimately lead to us being able to deliver exceptional value to our customers and our stakeholders. This means we will be able to introduce more cost-efficient, high-value products to the market while increasing our export performance by exporting surplus raw materials we manufacture.”

Leveraging the funds raised through its successful IPO in 2021, JAT Holdings PLC established a state-of-the-art manufacturing plant in Bangladesh in 2022, further solidifying its presence in a market where it has been a leader for over 20 years through its subsidiary, Asia Coating (Private) Limited. This strategic move not only strengthened JAT's regional footprint but also positioned the company to capitalize on the thriving Bangladeshi furniture industry, a sector JAT has long supported through extensive partnerships and networks with leading manufacturers. Utilizing the remaining IPO funds, JAT set up the Alkyd Resin Plant. This complementary investment further strengthens JAT's vertical integration and ensures a consistent supply of high-quality raw materials for its paint and coatings production, ultimately supporting 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 facility and team in Sri Lanka, ensuring continuous innovation and product development to meet the evolving needs of the market.

Ajith Bandara, Director - Research & Development at JAT Holdings PLC added, “JAT's state-of-the-art R&D facility, staffed by qualified local and international experts, played a crucial role in developing the formulas for the alkyd resin. This facility utilizes advanced machinery currently used by leading multinational resin manufacturers. Our team of researchers and specialists, with proven track records, continuously push the boundaries of innovation to design exceptional products in Sri Lanka. This, combined with our multinational manufacturing capabilities, allows us to deliver the best quality at competitive prices. We are excited to leverage the new Alkyd Resin Plant to further enhance our product offerings and solidify our market leadership."

About JAT Holdings PLC

JAT Holdings PLC is the market leader in wood coatings and brushes in Sri Lanka, with a dominant presence in the paints, and luxury home and office furnishing sectors. With two state-of-the-art manufacturing facilities, located in Sri Lanka and Bangladesh, supported by an advanced Research and Development Centre in Sri Lanka, JAT Holdings continues to fuel innovation, solidifying its position as a key player and emerging conglomerate in the region. Recognized for its financial stability, even in times of adversity, JAT Holdings PLC has been awarded a National Long-Term Rating of ‘AA (lka)’ by Fitch Ratings, while also being prestigiously ranked as the No. 1 Most Awarded Entity in the Diversified Sector by LMD. JAT Holdings’ commitment to its employees and workplace excellence has also been recognized through its certification as a Great Place to Work, making it an employer of choice.