VANICH GYPSUM COMPANY LIMITED

Established in 1981, Vanich Gypsum is one of a very few pioneers in gypsum mining industry in Thailand. In early years, the production capacity was less than 10,000 metric tones per year and there was only one mine operating at a time. At that stage, the total production was exported to serve the overseas demand. The mineral ore was used as an important component of cement. At the initial stage, the mineral ore was transported to neighboring countries such as Malaysia and Indonesia via railway and sea.

Due to the rapid growth in Asian economy in the eighties, the demand of cement coupled with the increasing usage of gypsum board has caused the demand for gypsum to grow substantially over the decades. Other Asian countries such as Japan, Korea, Taiwan, Hong Kong and Indonesia became new important markets for Thai gypsum producers. Therefore, in order to capture the growth as well as the market share, the company has continued its expansion in both production capacity as well as its ore reserve. Presently, the company has four mines. Three are in operation together with three crushing plants. Our current production capacity is approximately 1.8 - 2.0 million tons per year. Vanich Gypsum has a policy to maintain ore reserve at not less than five times total production capacity, at any point in time.

Prior to 1997, there were only a few miners and exporters of Gypsum ore in Thailand. After the Asian economic crisis, many new faces entered the market. Trying to establish themselves in this seemingly low - entry barrier industry. Some are brokers; some are small time producers.

Despite the abundance of suppliers of Gypsum ore in Thailand, we, Vanich Gypsum, believe we possess certain distinctive qualities that can differentiate ourselves from the generic crowd. The qualities that will enable us to better serve our customers. Among other things, we believe we have long track record, consistent product qualities, abundance ore reserve and logistically integrated mining-transport-export facilities. We also have sufficiently large export quota. Last but not least, we have experienced executives, who believe in and are committed to long term prospect of the industry.

Long Track Record

Vanich Gypsum Co. has been in mining-exporting Gypsum ore for almost three decades. We first established ourselves under Aikchai gypsum Co., Ltd. in 1972. Successively, Vanich Gypsum was registered in 1981, to handle all our Gypsum business. We have established and maintained; satisfactory long termed trading relationship, with our customers throughout the region. We have customers from Japan, Malaysia, Korea, Taiwan, Singapore, Srilanka, India, Bangladesh, Indonesia and the Philippines.

Consistent product qualities

Traders and small time producers will normally have to source supply from many miners to assemble a shipment. This will normally result in a compromised consistency in product qualities, from shipment to shipment. Vanich Gypsum, on the other hand, has own mines. Thus, we are in much better position, to carefully monitor and maintain, the consistency of our product qualities. More importantly is the percentage of Ca SO4.H2O, which is of particular concern, to most of our customers.

Abundance ore reserve

Minimum five-year ore reserve is one of our targets. Our exploration team and executives work closely together, to ensure that this target is achieved, at any point in time. To ensure our clients of their long-term supply. Also, to confirm our long-term commitment to the industry.