AkzoNobel sees South East Asia's value with €30 million Thailand investment
The project, supported by the Thailand Board of Investment, is a 120,000m2 site in Chonburi which will focus on performance coatings for various industries.
In regards to the cosmetics industry, AkzoNobel provides the coatings for plastic and glass bottles.
Production is due to start in the third quarter of 2016, and is earmarked for an initial capacity of 45,000 tons per year.
"Thailand is a key market for our growth strategy and this investment will enable us to further strengthen our position as a leading supplier, both within Thailand and as a hub to support the supply network through the region," says Conrad Keijzer, a member of the company's executive committee for performance coatings.
According to AkzoNobel, investing in this new facility means it is supporting its continued growth in Thailand, as well as making progress on its regional business expansion strategy.
"Our business in Asia has experienced strong growth during the last several years. As demand and volumes continue to rise, the new site will enable us to better serve our customers whenever and wherever they need our products, adds Keijzer.
"A number of existing operations will be consolidated into the new site, allowing us to achieve world class operational standards."
Thailand's beauty sector is becoming a force to be reckoned with
Thailand's beauty industry is growing, fuelled by increasingly sophisticated consumers, including the men's market which is proving to be particularly lucrative.
With 70 million potential consumers, the luxury goods segment continues to boom with a 24% increase in year-on-year sales. The top product categories include perfumes and cosmetics.
There are many opportunities for both international as well as domestic companies in this vibrant market, which values new and innovative products.
"A wealth of natural resources, low-cost skilled labour and regional economic integration with the ASEAN Economic Community by 2015 have attracted businesses keen to explore the vibrant new domestic markets that are emerging in ASEAN countries," says the president of the Thai Cosmetic Manufacturers Association, Ketmanee Lertkitcha.
A recent reduction in import duties in Thailand is also believed by the government to be attracting more foreign shoppers, as well as increasing domestic spending on cosmetics.
As a result, the Authority is planning to improve cross-border trade, and is eyeing a series of initiatives which will ideally give more funding to border activities and provide greater convenience for multi-country transactions.
