Board manufacturer Egger has just closed a deal to acquire a significant share in Thai wood-based materials manufacturer Panel Plus, to further its expansion into the Asian market.
Egger Group has acquired a 25.1% stake in the company for an undisclosed sum. According to Egger, it signed the purchase agreement for the shares at the end of November 2023, and the deal officially closed on January 3.
The Austrian board company says the move reflects its plans to expand into the Asian market. Panel Plus – which was founded in 1990 – produces a wide range of wood-based materials, with its core markets being Thailand, Malaysia and Vietnam.
In Europe and America, Egger has a total of 22 production plants. It also has sales offices in Shanghai, Tokyo and Ho Chi Minh City.
Thomas Leissing, Egger Group’s chief financial officer, believes the Asian market plays an important role for the company’s future strategy, and says that the company has been considering the expansion for some time. “Panel Plus has state-of-the-art production sites and a product portfolio that is perfectly tailored to regional requirements,” he said. “We are convinced that we will benefit greatly from their local expertise and will be able to exploit further growth opportunities together. We are delighted with this strategic partnership.”
Panel Plus chief executive Amporn Kanjanakumnerd also believes that the deal will be beneficial for both parties.
“This collaboration will enable us with a wide range of resources and capabilities with cutting-edge technology that we can utilise to better serve our customers. From the very beginning, Panel Plus has been committed to innovative products and environmental consciousness. Creating added value, a zero-waste concept and sustainable growth was always our focus.
“By combining Egger’s deep industry knowledge and expertise with our own local innovative solutions, we are confident this new venture will be beneficial for our customers as we will leverage each other’s strengths with striving for excellence in our pursuits.”
In its recent half-year statement released last month, Egger reported it had experienced a decline in sales for its 2023/24 financial year, which it has mostly attributed to a “challenging” business environment and a drop in demand.