The move is to the company's joint-venture plant at Bangsaothong in Samut Prakan.

It will be the main producer of silicone nipples and feeding bottles for Japan and other markets.

Pigeon said lower costs here were the reason for the move.

Thailand partner Moong Pattana Marketing owns 47 per cent of the venture.

Marketing manager and joint-venture director Methin Lersumitkul said the plant exported 70 per cent of output to more than 20 countries.

Pigeon is responsible for plant operation and production policy.

"The plant is able to produce good-quality silicone nipples and baby-feeding bottles in line with Japanese international standards," Methin said.

The plant expects local sales to increase by 15 per cent this year.

Pigeon started moving nipple-production machinery to the Thailand plant last year, spending Bt50 million to upgrade the factory.

The improvements will allow for a 30-per-cent increase in annual production to about 30 million units.

Methin said feeding-bottle equipment was on its way from Japan this year.

Moong Pattana product manager Paitoon Sathainrapabayut said the total market for baby accessories, including silicone nipples and feeding bottles, was expected to remain static this year at about Bt700 million in sales. Of that, 34 per cent is in the "economy segment".

He said the company expected to increase Pigeon products' market share in both the economy and premium market from 54 per cent to about 60 per cent by the end of this year.

"Our mission is to promote the market domination of our core products by taking advantage of the 30-year heritage of Pigeon in Thailand," Paitoon said.

Kwanchai  Rungfapaisarn

The Nation