BANGKOK: -- TURKEY-BASED BEKO, the second-largest home-appliance player in Europe, is setting up business in Thailand with an eye to making this country the brand's regional manufacturing hub in Asean. "We are seriously considering investing in Thailand to manufacture major home appliances such as refrigerators, air-conditioners and washing machines. The plant will cost about US$100 million initially, and the decision will be made by the end of this year," Levent Cakiroglu, chief executive of Arcelik, the owner of the Beko brand, said yesterday.
The company is studying options for the region, he said.
It researched the Thai market for about three years before coming here.
Thailand has many strengths as a potential manufacturing centre for Asean, including a central location, developed transport and infrastructure, established supporting industries, business-friendly environment and sizeable domestic market.
Thailand is also one of the most attractive investment locations in the world, he said.
Beko operates about 14 factories in Europe, China and South Africa.
The brand's debut here would spearhead its regional ambition to become a favourite brand of consumers in the Asean Economic Community (AEC).
It aims to replicate in the AEC its phenomenal success throughout Europe, where its washing machines, refrigerators, dishwashers and cooking appliances have become market leaders.
"In the coming three years, we expect to achieve a 5-per-cent market share in the region, including Thailand," he said.
"We also aim to achieve $500 million in sales in the Asean region in the next three years, of which 10-12 per cent will be from Thailand."
Beko has been active in more than 100 countries. In Asean, its products are already available in Malaysia, Singapore, Cambodia, Sri Lanka and Thailand, as well as farther away in Australia, New Zealand and China.
It plans to market in other countries in Asean by next year, including Vietnam, Indonesia, Myanmar and the Philippines.
"The Asian consumer is as sophisticated and demanding as the European consumer. Our cutting-edge technology and responsiveness to consumer needs have enabled Beko to grow rapidly in Europe in a market that is crowded with well-established global brands.
"We are confident that the demanding Thai consumer will respond positively to Beko's sensational offer to do more, and to do it better with the best technology," Cakiroglu said.
No comments:
Post a Comment