2012-07-18
Taiwanese beverage converter invests production
Southeast Asia-Hon Chuan Enterprise Co Ltd has planned a US$ 333 million (NT$10 billion) investment to expand beverage packaging production capabilities in Southeast Asia within the next ten years. Hon Chuan Chairman, HC Dai, said the company intends to establish two to three plants each year over the next ten years, with Myanmar, Philippines, Pakistan, Cambodia and Laos as potential locations.
According to the Taiwanese beverage packaging converter, Southeast Asia markets comprised 11% of Hon Chuan’s sales in 2011, approximately US$ 52.33 million (NT$1.57 billion), making it an important market that needs to be fully tapped.
Hon Chuan currently has eight plants in South East Asia, in Thailand, Vietnam, Indonesia and Malaysia, while it also has 13 production sites in China, and five other domestic sites in Taiwan.With the increased production capacity projects in Southeast Asia, market analysts predict an annual revenue growth rate of 40% to 50% for Hon Chuan – a big leap over the 20% to 30% sales increase estimated for its China market, and Taiwan’s 5% to 10%.
Within five years, Hon Chuan’s annual revenue from Southeast Asia is expected to hit US$ 333 million (NT$10 billion).Between January to April this year, the company’s sales revenue in Southeast Asia soared 47% over the same period last year to US$ 26.8 million (NT$ 804 million), with revenue in April alone shooting up by 129% to US$ 9.5 million (NT$ 285 million) – Hon Chuan attributes this to an influx of orders following the recent start-up of its new plant in Vietnam and completion of a capacity expansion programme at its Thailand plant.
Contributed by Stuart
Hoggard Editor´s note: While the mainland Chinese market is vast, competition is extremely stiff, particularly with the entry of global players. That´s why some companies new growth strategy is targeted away from the mainland towards Southeast Asia, with its high populations, rising disposable incomes and tropical climates – factors which all contribute to increasing demand for beverages and beverage packaging.
