The Egger Group has acquired a minority stake in Thai Panel Plus as it looks to strengthen its market position in Asia. The purchase agreement, which sees Egger Group acquire a 25.1% stake in the Thai wood-based material manufacturer Panel Plus Co, was signed on 30th November 2023 and the closing took place on 3rd January 2024. All parties have agreed not to disclose the purchase price or any further details of the transaction.
Thomas Leissing, chief financial officer Egger Group and speaker of the group management, said: ”As a significant growth market, Asia plays an important role in our strategic considerations. We have been considering expanding our presence there for some time now. In Panel Plus, we have found the ideal partner in this respect. Panel Plus has state-of-the-art production sites and a product portfolio that is perfectly tailored to regional requirements. We are convinced that we will benefit greatly from their local expertise and will be able to exploit further growth opportunities together. We are delighted with this strategic partnership.”
Panel Plus Co., Ltd. was founded in 1990 and today produces a wide range of wood-based materials such as chipboard and MDF boards, both laminated and unlaminated. Its main production plant is in Hat Yai in the southern Thai province of Songkhla and Thailand, Malaysia and Vietnam are its core markets. The main target groups are the local furniture industry and distributors.
The Egger Group has an established sales organisation in Asia with its own sales offices in Shanghai (CN), Tokyo (JP) and Ho Chi Minh City (VN). Egger says the stake in Panel Plus now gives it the opportunity to broaden its own market access, address additional customer target groups and further expand availability and service for them.
Amporn Kanjanakumnerd, chief executive officer Panel Plus Co., Ltd, said: “This collaboration will enable us with a wide range of resources and capabilities with cutting-edge technology that we can utilise to better serve our customers. By combining EGGER’s deep industry knowledge and expertise with our own local innovative solutions, we are confident this new venture will be beneficial for our customers as we will leverage each other’s strengths with striving for excellence in our pursuit.”