Thursday, September 3, 2009

Brand's plans to triple its capacity

       Cerebos (Thailand) Limited, the producer of Brand's food supplements, is investing 2.45 billion baht to triple its production capacity due to confidence in the Thai economic outlook.
       Lackana Leelayouthayotin, the company's CEO, said the outlay was a major investment for the 14-year veteran of the Thai market.
       "We are confident in the Thai economy, which is expected to recover by the end of this year," she said.
       Of the total,730 million baht is for expanding the capacity of Brand's essence of chicken at the Laem Chabang plant in Chon Buri and 500 million baht will go to the production of caps. Another 1.22 billion baht will be used for constructing two facilities on a 38-rai plot in Pinthong Industrial Estate in Si Racha,Chon Buri - one each for the bird's nest products and Vita food supplements.
       The first two projects have already been finished. Work on the two new facilities is under way and the will be opened early next year.
       After the new factories start operation in January, the capacity of all categories under Cerebos will rise threefold.
       The production capacity of Brand's chicken essence will rise to 960,000 bottles per day, for bird's nest products it will reach 300,000 bottles, and for Vita food supplements the capacity will reach 600,000. The additional production capacity will serve both domestic and export markets.
       Over 50% of the bird's nest products will be exported to China. Cerebos has four factories: in Thailand, Taiwan, China and Malaysia.
       Ms Lackana said that with the domestic economy expected to improve next year, the company expected demand for chicken essence in the Thai market next year to grow at a double-digit rate,similar to the past few years.
       The Thai chicken essence market is estimated to be worth 3 billion baht with 10% growth this year.
       Sales of Cerebos in the first seven months of this year grew at a doubledigit rate because of new products and marketing activities.
       Cerebos controls more than 90% of Thailand's chicken essence market and has a 60% share of the 2.5-billion-baht bird's nest market.

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