President Stephen Golsby said the company, a subsidiary of US-based Bristol-Myers Squibb, is in the evaluation process for the location of a large manufacturing plant for powdered milk products in Asia, requiring an investment of more than US$100 million (Bt3.52 billion).

"We have been considering five major candidate locations within the region, including Thailand and Singapore," said Golsby, adding that the evaluation process would be finalised within the next six to 12 months.

"We choose a country by many criteria: the quality of the local labour force, local infrastructure for shipping products in and out of the country, privilege programmes issued by the government to encourage foreign investors and local market potential," said Golsby, adding that Thailand was a very strong candidate for the new investment.

Mead Johnson Nutritionals yesterday announced the move of its Thai headquarters from Bang Na to the new Exchange Tower at the Asoke Intersection.

"We have been in Thailand for almost 40 years, and our business has grown very substantially in the country," said Golsby, adding that the company's office, which has been located in Bang Na for almost 15 years, had become increasingly inconvenient. Most business partners, including suppliers and customers, are located in the city. He said moving its office would allow the company to expand the number of divisions within the organisation, particularly research and development (R&D) facilities.

Golsby said he moved the company's Asian headquarters from Hong Kong to Bangkok in 1998 when he was senior vice president for the Asia-Pacific. The relocation was to take advantage of Thailand's central location in Asia, access to a talented workforce and cost competitiveness.

"Thailand is now not only the headquarters for Asia, but also the regional research and development centre," said Kasper Jakobsen, senior vice president for the Asia-Pacific.

Jakobsen said Mead Johnson opened its manufacturing facility for powdered milk products in Chon Buri in 2001 after moving the R&D facility from the Philippines to Thailand in 1998.

He said Asia today accounted for a third of Mead Johnson's global business and has enjoyed the fastest growth rate - in the double digits each of the last six or seven years.

"We have grown more than 10 per cent in Thailand every year, to more than $100 million in sales expected for this year," said Jakobsen.

The company also announced the completion of a $4-million expansion of its Chon Buri plant, which will increase its production capacity for powdered milk products by 25 per cent. Roughly half the production will be exported to Malaysia, Vietnam, Sri Lanka and Pakistan.

Mead Johnson Nutritionals currently has seven factories for child nutrition products worldwide. Six manufacture powdered milk in Mexico, the US, the Netherlands, China, the Philippines and Thailand, while the seventh produces liquid milk in the US.

"We currently employ almost 500 people in Thailand: 300 office staff and 200 at the Chon Buri plant. We would like to increase our head count in Thailand by 5 per cent every year," said Jakobsen.

Kwanchai Rungfapaisarn

The Nation