It is of great importance to situate your company in a strategically distance from the leading markets in your field and the location of Thailand makes the country an optimal choice for investments. This is the philosophy of the Bangkok-based specialist in solutions to the cement industry L.V. Technology Public Company Limited.
“It is important to be where the action is, and what is more natural than selecting Thailand? The location in the centre of the emerging markets between the industrial superpowers of China and India in the heart of the ASEAN region is ideal for a company like ours”, says Hans Jørgen Nielsen, founder and president of L.V Technology.
The new centre
The company was founded in 1996 and to the Danish engineer Hans Jørgen Nielsen – who previously had been working for the international cement giant FL Schmidt – the selecting of the right location is decisive for succeeding.
“For us it is important to be in the centre of the events. 150 years ago that place was in England, where the industrial production was invented. Afterwards the US became the leading catalyst for the industrialized progress. 40 years ago Japan grew to be the new centre of industrial growth and now it had moved to the ASEAN region though Taiwan and South Korea”, he explains.
But the location also makes demands on the company’s capability, since they must compete with the strengths of both the European and the Chinese production.
“In China they are extremely fast, but not very flexible in their production, and in Europe it is the other way around, the process is flexible but not fast. In order to compete with both of them we have to be both fast and flexible”, Hans Jørgen Nielsen says.
Despite the European and Chinese challenges the choice of location has been quite advantageous for L.V. Technology so far. In the intervening 12 years the business has expand rapidly. Today they are represented in India, China, Brazil, Europe and the USA, the company’s head office in Bangkok has grown from four to 138 employees and regardless of the global financial recession the company could present a record high annual profit in 2008. So Hans Jørgen Nielsen has definitely not regretted the decision of placing his company o the country of smiles.
“Thailand is a fantastic place to invest. There are some problems with lacking governmental support and we still have to work for being internationally recognized for its potential of being a leading industrial authority. But the reasonable cost level, the impressive pool of well educated personal and no prospects of major cost increases in the coming years, as China experiences right now, makes Thailand an ideal spot for industrial investments”, he states.