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Published on November 14, 2007

The Bt200-million expansion of its Samut Prakan plant was completed in October, allowing the company to move 12 product lines from its Australian factory to Thailand.

"Operation in Thailand has more advantages due to tax benefits. We can reduce the company's operating costs," said Osborn.

Osborn expects the company's volume of trade between Thailand and Australia to rise to US$41 million (Bt1.38 billion) as it exports tissue products to that country.

Formerly, Kimberly-Clark Thailand manufactured only tissue paper such as facial tissue. After the expansion, it is producing tissue products and wipes for general consumers, healthcare and heavy industries.

Osborn said all the new products would be exported to countries in the Asia-Pacific. Initially, they are being sent to the company's distribution centre in Australia for delivery to cities, including Melbourne, Perth and Brisbane as well as to Auckland in New Zealand.

At present, 95 per cent of the company's sales are in the domestic market. Osborn expects export revenue to reach 35 per cent by 2008 and to 45 per cent within five years as the plant reaches full production capacity.

"This year, I estimate Kimberly-Clark Thailand will earn Bt3.5 billion in revenue, 15-20 per cent higher than last year. The figure should rise to Bt5.5 billion next year, Bt2 billion of which would come from the export market," he said.

Osborn said the company would distribute tissue products to other Asian countries such as the Philippines, Indonesia and Singapore in the near future, according to demand.

Nalin Viboonchart

The Nation