Label Company Opens Thailand Factory Extension

Skanem, one of Europe's largest self-adhesive label producers, will start to build a new factory in Thailand later this month to take part of the East Asian market growth.

Skanem, one of Europe's largest self-adhesive label producers, will start to build a new factory in Thailand later this month to take part of the East Asian market growth.

The company said that the development will also be a step further in Skanem's strategy to become a global supplier.

The deal to build a 4,200 square metre factory on a 13,000 square metre site at Amata Nakorn, south of Bangkok and 30 minutes from the Suvarnabhumi airport which opens this autumn, was sealed this week by Skanem owner and chief executive officer, Ole Rugland.

Building work will start within the next few days and it is hoped the factory will be in production by the New Year.

Rugland said: "Last year we acquired Skanem Introl and Skanem Introl-Print, based respectively in Poznan (Poland) and Moscow.

Now we are moving in to the Asian market and Thailand is an ideal base for us." The Asian market for self-adhesive labels is expanding at 20 per cent per year, and forecasts for the Asian markets predict it will represent 37 per cent of global label consumption by 2010, said Skanem.

Rugland added: "We began looking at the Bangkok area a year ago.

We have already secured our first contract and we look forward to developing our relations with potential customers in the near future." A new organisation will be established during the next few months, he said.

Skanem currently operates labelling plants in seven countries - Norway, Sweden, Denmark, UK, Germany, Poland and Russia - and provides labels for some of the world's largest companies.

It employs 1,100 people in 12 printing plants and the group's total turnover in 2005 was EUR156 million.

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