AN ECONOMIC FEASIBILITY FOR THE PRODUCTION OF POLYURETHANE-COATED POLYESTER GLOVES TO REPLACE IMPORTS OF GLOVE MANUFACTURING COMPANIES IN PHRA NAKHON SRI AYUTTHAYA PROVINCE

Abstract

The purpose of this article is to analyze the economic benefits of producing polyurethane-coated polyester gloves (with comparative project with importing polyester gloves coated with polyurethane in Thailand (Without Project). Throughout the project life of 10 years (2022 - 2031), by taking into the account opportunity costs and inflation. Data were collected from 1 executive, 1 marketing manager, and 1 production manager using a snowball sampling format with in-depth interviews. The structured interview Questionnaire has been tested for confidence and accuracy and has been certified for ethics in human researching.

The results showed that the production of polyester gloves coated with polyurethane (With Project) had better economic value compared with the case of importing polyester gloves coated with polyurethane in Thailand (Without Project). That is, the net present value (ENPV) was equal to 260,473,228 baht, the rate of return on cost (EBCR) was equal to 1.48 times, and the internal rate of return (EIRR) is equal to 1.82 times, higher than the case (Without Project) . It was found that ENPV was equal to 157,827,606 baht, EBCR was equal to 0.23 times and EIRR equal to 138 times, respectively. In both cases, the sensitivity of the cost price and selling price were as follows as 14 percent and 5 percent, while the payback periods were11 months, 6 days, and 25 months, 4 days, respectively.  

Therefore, the production of polyurethane-coated polyester gloves to replace imports is an appropriate choice of production decision to add value to gloves for industrial use that is economically worthwhile.