Growth can lead to new Pandora factory outside Thailand’s borders. Fears of political unrest and natural disasters are taken into consideration.
Sales of Pandora jewelry is increasing in several key markets. It provides bustle and consideration of new extensions at the factory in Thailand where all of Pandora jewelry is produced today. But it is far from certain that Pandora will be 100 percent dependent on its production in Thailand.
“It can be risky to put all your eggs in one basket. It makes sense to spread the risk,” says Thomas Nyborg, CEO of Pandora Productions.
Both airports in Bangkok had to close for a period in 2008 during violent political riots. In 2010 demonstrations and street fights broke out only 25-30 kilometers from Pandora’s factory and curfew was issued, said Nyborg.
Recently, 61 provinces and 8.5 million people in Thailand were hit by the worst floods the country has experienced in 70 years and Pandora got tested its emergency response without using it.
With so much drama in Thailand, the Pandora Board in Denmark may well be a bit nervous about being totally dependent on production in Thailand.
It can have a decisive influence in a future strategic decision Pandora future of production.
“Asia is one of the areas where we expect growth, so there is a point in getting closer to some of the largest markets here,” says Thomas Nyborg, who believes that the benefits of Thailand is so great that they outweigh the risks.
Among other things, Thailand has strong traditions in jewelry making. There is also the option to expand capacity in Thailand if Pandora will break with its own tradition not to work at night.
“There is a historical reason recommendation that it is best to produce jewelry during the day, and it is also best for a family’s daily routine. So there is no social in it. But the night shift is widely used in industry, and there is no strategic decided that we can not do it here, “says Thomas Nyborg.
What a load of bullshit to say.