Manufacturers prepare for a recovery

The Oishi Group this week will announce the purchase of new soft-drink bottling machinery, featuring cold aseptic filling, from Shibuya Kogyo in Japan for Bt1.4 billion.

Managing director Tan Passakornatee said the investment would strengthen Oishi's leadership in Thailand's ready-to-drink green-tea market, as well as serve as an indicator of its business confidence, in that it will represent a doubling of production capacity.

Lion (Thailand) yesterday announced it would spend at least Bt300 million this year to improve its logistics and supply chain and enhance efficiency in production and quality assurance.

Managing director Boonyarith Mahamontri said Lion believed the Thai economy would gradually improve, because the government was working hard to tackle economic problems.

"I personally believe the economic situation will be better, barring any unexpected developments," he said.

"My belief is supported by several positive signs, including the upper house approving the executive decree enabling the borrowing of Bt400 billion, which will be urgently used to ease the impact of the economic downturn, and a better economic situation in the US."

He said the government itself was flexible and willing to compromise when it came to running the country. This will have a good effect on the sentiment of consumers, causing them to resume spending.

"Lion (Thailand) has targeted Bt9 billion in sales this year, up significantly from last year's Bt8.4 billion," said Boonyarith.

He said exports made up about 10 per cent of sales, with Japan responsible for 30 per cent of that.

Detergents and fabric-care products contribute about 40 per cent of sales, while the rest comes from oral-care, beauty and baby products.

Boonyarith added that Thailand was the site of one of the largest joint ventures that Japan's Lion Corp has entered into abroad. The parent has halted local manufacture of products like toothbrushes and Kirei hand-cleansing foam, instead producing them in the Kingdom.

Saha Pathanapibul president Boonchai Chokwatana said his company agreed with other retailers and suppliers urging the government to wave import duties on luxury goods, because that would help promote Thailand as a major shopping destination. Promoting tourism is one of the best ways to ease economic problems quickly.

"The government should also spend money to promote Thailand's image as a safe destination, in order to win the trust of foreign tourists," said Boonchai.

Meanwhile, Lion (Thailand) yesterday announced the launch of Pao Silver Nano, a new detergent specially developed for night-time washing and drying. The new product is a response to the needs of a new generation of consumers who wash and dry their laundry at night. There is no need for sunlight and yet no bad odour.

"Lion will spend more than Bt80 million on brand awareness of the new product among our target customers. Our marketing campaign will incorporate various advertising media, public relations and promotional activities. We expect Pao Silver Nano to help us increase our market share by 5 per cent," said Boonyarith.