OUR OUTLOOK - Pressalit A/S

In the late summer of 2009,
Pressalit Group announced
plans to build a new toilet seat
factory in the Far East. President
& CEO Kim Boyter and
Project Manager Jesper Riis-
Antonsen talk about the new production facility,
which will begin production in Thailand at
the end of 2010.
“This is the first time in Pressalit’s history that the
company has established a plastic toilet seat
production facility outside Denmark, and naturally
it is an important milestone for us,” begins
Kim Boyter, who goes on to explain:
“The decision was made following a request from
our largest single customer, the German sanitation
giant Villeroy & Boch, which about a year ago
acquired the Thai company Nahm. As Pressalit is
the main supplier of toilet seats for Villeroy &
Boch’s products in Europe, it was only natural to
try to expand the strategic partnership by continuing
collaboration in a new market. And if we are
to supply products in the Far East, we need to
establish a local presence to avoid having to pay
import duty and costs linked to shipping our products
from Europe to the Far East.”
Access to new markets
With a new factory in Thailand, Pressalit can
increase capacity from its existing production
facility in Denmark and at the same time establish
a strong platform for growth while gaining access
to lucrative markets in Asia.
“For a company like ours, growth is a precursor
for continued development. In Europe we com-
This is the first time in
Pressalit’s history that
the company has established
a plastic toilet seat
production facility outside
Denmark, and naturally
it is an important milestone
for us.
ANEWBRIDGEHEAD
TO ASIA
pete with strong rivals in well-established markets.
Asia, on the other hand, offers the prospect
of new market shares and new customers. We
are therefore convinced that establishing a production
facility in the Far East will strengthen our
overall business – and also help to lift our activities
in Europe,” says Kim Boyter.
Maintaining Pressalit’s values
Before deciding to build the factory in Thailand,
the company considered other possible locations,
including Vietnam:
“We opted for Thailand because of its unique
combination of a well-developed infrastructure, a
suitable level of education and attractive trade
agreements with other countries in the region,”
explains Logistic Director Jesper Riis-Antonsen,
who acts as project manager on the Asia project.
Since the decision was taken, things have moved
ahead quickly, and in November the Thai Board
of Investment approved the plans. Pressalit has
now entered into an agreement with the Amata
City Business Park in Rayong province where the
construction of a new factory building in line with
Pressalit’s requirements is scheduled to get
underway. Production in Thailand will, however,
be somewhat different from that in Denmark:
“Both in terms of staff and number of units, the
factory in Thailand will be far smaller than our Ry
production facility. And because wages are lower
in the Far East, the facility will be far less automated.
But in all other respects, our ambition is
to retain Pressalit’s core values vis-à-vis high productivity
and good staff conditions,” says Jesper
Riis-Antonsen.
Not a substitute for Danish
production
Initially, the factory will have a
modest output, but production
is scheduled to expand year for
year, a fact that will undoubtedly
benefit Pressalit’s European
customers. However, Kim Boyter
is quick to point out that the
facility in Thailand should be
seen as a capacity expansion
rather than a substitute for the
company’s current Danish production
activities:
“We are continuing our strategy
of looking at new initiatives that
can help to ensure efficient production
in Ry, including new
technology, new production
techniques and competency
development of our skilled Danish
workforce.”