Regional senior executive vice president Thirawit Leetavorn said the market in Europe offered a huge potential and that the company would like to open an office in each city.

Advance Agro makes paper under the Double A brand, which is distributed in 80 countries. Thirawit said the paper market was undeveloped and that there was no single recognisable brand.

"We're running at full capacity but also doing a feasibility study on future expansion," he said. "So we thought of highlighting the benefit of using high-quality paper. Our decision to brand paper went down well with consumers."

Although a paperless environment was encouraged, Thirawit said paper consumption was on the rise.

"In the developed market, paper consumption is between 60 and 70 kilograms per person per annum. In Thailand, it is only about 12kg per person per annum and in Malaysia 12kg to 14kg," Thirawit said. As for setting up factories in other countries, Thirawit said the company would consider the possibility but it was focused on developing its paper mill at home.

Thirawit considers the Malaysian market to be largely untapped. In the 80-grams/square-metre segment - aimed at premium consumers - Advance Agro has an 80-per-cent share.

On developing the local market, he said, "We want to focus on stationery products, which are new to the market, as well as opening more Double A copy centres, which offer a modern retail environment to the traditional copy centres."

Currently, Malaysia has 380 AA copy centres.

The Star

Asia News Network

KUALA LUMPUR