Beger build manufacturing plant in Indonesia

Beger to build manufacturing plant in Indonesia

10:50 AM, 9th May 2013
Beger to build manufacturing plant in Indonesia

BANGKOK, THAILAND: Beger Co, the maker and distributor of wood coatings and industrial paint products, plans to set up its first foreign plant in Indonesia in the next five years to tap huge demand there. According to Worawat Chaiyosburana, Vice-President, Beger, the company is studying ways to set up its first factory abroad, with Indonesia offering great potential as Association of Southeast Asian Nation’s (Asean) biggest market.

Beger will partner with Siam Cement Group which will provide sales channels for Beger products. With limited warehouse space, only 80-90 per cent of production capacity is being used even during peak periods. But the company plans to expand warehouse space and apply automation to improve efficiency, so the utilisation rate should rise by 1.5 times. As well, plant expansion will start at year-end and conclude in 2015.

Once the Asean single market begins in 2016, exports are predicted to grow to 20 per cent of the company’s sales. “Even before the AEC takes place, potential in the foreign markets is quite high. However, we want to grow at a slow pace and keep our image as a premium brand. Therefore, we’ll take the time to select our business partners carefully,” said Worawat.

© Bangkok Post News



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