Dubai's Depa buys stake in Thai carpet firm

Dubai: Dubai-based interior contracting company Depa yesterday said it has acquired 20 per cent of the Thailand Carpet Manufacturing Public Company (TCMPC).

With the acquisition, the company expects TCMPC's projected 2007 revenue to go up by 20 per cent to $29.7 million (Dh108.9 million) and double its production capacity.

The agreement was signed in Thailand in the presence of Mohannad Sweid CEO of Depa United Group and Dr Chalie Jangvijitkul, managing director of TCMPC, who said: "Depa and TCMPC share a vision in offering high end, high quality products for the upper levels of the market. Our clients recognise the value of quality and our partnership with a prestigious company like Depa is a clear indication that our products and business practices are of international standards."

For Depa the agreement allows it to service its clients better by being able to provide them with turnkey solutions more competitively. TCMPC plans use this cash injection to bolster its production capacity to serve demand from hotels, casino and convention centers. The company intends to invest $3.7 million (Dh13.6 million) in machinery to double its production from 240,000 square metres per year to 420,000 square metres per year during the year 2007.

Further investments into hand-tufted carpet production are planned to raise production by 10 per cent.