Global brand furniture maker Koefoed last year closed down its plant in Denmark due to operating difficulties. It was also last year that the 70-year-old Danish company has formed a business alliance with Thai furniture maker, OK Wood Product, who now manufactures and exports its products under the Danish firm’s brandname.
Thanun Ounkomol, managing director of the Bangkok-based firm, told Thai newspaper, The Nation, that the link with Koefoed has given the company access to the EU, with particular focus on Denmark, other Scandinavian members and Germany.
As part of the business alliance with the Danish firm, OK Wood exports to Denmark under the Koefoed brand, and under Kircodan to other countries in the European Union.
“Our strength is to produce quality without any toxic or chemical residues in the wood. We guarantee that we only use natural wood to assure customers our products are environmentally friendly,” Thanun told The Nation.
Products from OK Wood include garden and outdoor furniture as well as innovative toy, the “spring rocker” riding toy for kids, which was officially launched at a furniture fair in Germany last September. The company received its first order – worth US$400,000 (Bt15.6 million) from a Danish customer.
In addition, Koefoed placed its first order worth US$500,000 with the company in October last year.
Under the business alliance, Koefoed has also provided more than 10 furniture designs, technical expertise and machinery to OK Wood.
OK Wood today produces a wide range of furniture, offering more than 200 designs to support its five-year business plan with the target to achieve total sales of Bt400 million a year and list on the Stock Exchange of Thailand.
The Thai furniture manufacturer has a registered capital of Bt50 million and is wholly owned by Thanun. Its domestic and export sales currently generate combined annual revenue of around Bt150-200 million.
To support its expansion plans, OK Wood Products has a massive wood stockpile of 100,000 cubic feet, enough raw material to support six months’ output. This will ensure that orders will be shipped on time.
