In the late summer of 2009, <strong>Pressalit</strong> 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 <strong>Pressalit</strong>’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 <strong>Pressalit</strong> 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, <strong>Pressalit</strong> 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 <strong>Pressalit</strong>’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 <strong>Pressalit</strong>’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. <strong>Pressalit</strong> 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 <strong>Pressalit</strong>’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 <strong>Pressalit</strong>’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 <strong>Pressalit</strong>’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.”
We are convinced that establishing a production facility in the Far East will strengthen our overall business – and also help to lift our activities in Europe.” 015# New Production in Thailand
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