Placing Production in Thailand Boosts Danish Business

Seven months into the current fiscal year, the Danish firm Lodam Electronics is able to present increasing profits and an almost doubled periodical turn-over. Although the company’s business headquarters is found in the Danish town of Sonderborg, all of its production is carried out in Thailand. The company began having hydrogen plates made by a partner in Thailand in 2001, and the outsourcing has since then been expanded to include the entire production of finished instruments. Lodam Electronics’ administrative director Kristian Strand is very satisfied with this development.
     “We live up to our own expectations, although the financial results can be even better. We are on top of our deliveries to the factories of Maersk Container Industry in Tinglev and China, and we have a healthy growth in the sales of control systems for ventilation and heating pumps,” he tells the Danish business newspaper Erhvervsbladet.

Lodam Electronics has ambitions to become a ‘development house’ for electronic control systems for cooling, heating, and ventilation. These ambitions are now closer to being realized due to the company’s general business success, which has primarily been boosted by the outsourcing of their production. More than 1600-1700 employees are involved in the production in Thailand, which enables Lodam Electronics to match the changing needs of their biggest customer, Maersk Container Industry (MCI), who is now moving its entire production to China. It would have been a problem for Lodam Electronics to stay on as MCI’s delivery partner had it not been for the production being based in Thailand.

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