The total revenue from sales and services amounted Bt 6,151 million, an increase of Bt 477 million or 8.4% despite lower sale volumes.
On the local market, the zinc related industries slowed down in the midst of a gloomy domestic economy. Total zinc metal consumption was limited to 114,000 metric tonnes, a decrease from 2004 of 8.5%. However, the zinc consumption in some sectors such as zinc oxide and auto parts rose significantly in spite of the sluggish economy. Total sales reached a volume of 102,000 metric tonnes of metal split in about 61,000 metric tonnes of zinc ingots and 41,000 metric tonnes of alloys.
Domestic sales were 10% lower than in 2004 due to lower demand. Total exports also decreased by 11.5% as higher margin products were given priority. For those reasons and also taking into account the uncertainties on the supply side, the production was slightly reduced to 101,186 metric tonnes.
The positive zinc price evolution surprised, particularly in the last quarter of the year and generated confusion and some disturbance both on the supply and demand sides. It pushed the income of the company drastically upwards, even if the locked-in forward price has somewhat limited this upside. This positive impact on the income more than compensated for several negative factors, namely the reduction of import duty of zinc to 5.5% and the steady increase of electricity and diesel prices.
In view of the good results and by way of confirming our commitment to the community, the company has set up a Fund for the support of the community that will promote and assist projects to improve the living conditions of the populations near Padaeng Industry?s sites, especially in Tak province.
Established on April 10, 1981, Padaeng Industry Public Company Limited is Listed on SET in the sector Mining. It is the only zinc smelter in Southeast Asia with an annual production capacity of 110,000 metric tonnes of zinc metal and alloys.
The Company?s zinc mine and smelter are located in Tak province; the roaster plant is located in Rayong province and the head office in Bangkok. The Company?s total workforce consists of 760 employees.