Media center

The Swiss trading giant DKSH will invest more than one billion baht in Thailand this year to enlarge its business. DKSH president and CEO Joerg Wolle said it would spend 600 million baht to construct a new office building in Bangkok's Bang Chak area and another large amount to acquire Shell Distribution, which sells Helix lubricants.

The acquisition will allow DKSH Thailand to penetrate the automotive industry, giving it a larger market share and opening up a new trade channel for products and suppliers. "We can integrate Shell's existing infrastructure of 30 depots around Thailand and 225 specialists and expand our footprint and network," he said. Shell Distribution would be renamed DDC, which stands for DKSH Distribution Company.

Another 75 million baht will be spent on a new contract for a manufacturing facility for pharmaceuticals, confectionery, nutrition products and other goods. DKSH would use the facility to provide manufacturing services to Besins Healthcare, a Belgian pharmaceutical company, for a hormonal medicine to be supplied to various countries in Asia-Pacific, as well as the backup supplier for European and US markets.

DKSH Thailand also plans to add a new 300-million-baht, 28,000-square-metre complex housing a showroom, an application engineering centre, a distribution centre as well as a maintenance and repair workshop in Wang Noi district, Ayutthaya. The facility would allow the technology business unit to expand and strengthen its position as a market leader for capital investment goods and analytical instruments in Thailand. Dr Wolle said the company would expand its business by adding suppliers and products to its portfolio and making acquisitions. DKSH Thailand had 40% of the group's 280 billion baht in sales last year.

Originally published by the Bangkok Post on June 23, 2010. Reprinted with permission. All rights reserved. www.bangkokpost.co.th.

www.bangkokpost.com