Polykemi Group is expanding its structure with an eleventh company, Polykemi (Thailand) Co. Ltd. The company has opened a local office in Thailand and is simultaneously evaluating the possibility of building a future plant producing plastic compounds based on high-quality virgin raw materials and recyclates. This step is part of the group’s long-term strategy to expand its presence in the Asian market. As stated, five years ago Polykemi began analysing this region and developing its growth plan. The group currently operates two production plants and two sales offices in China, which provides significant production capacity for the Asian market. The next stage is to strengthen its local sales presence, particularly in Thailand.
Materials for the Thai market will be supplied from Polykemi’s factory in Kunshan, China. As Magnus Lindahl, CEO of Polykemi Asia, points out, further decisions will depend on how sales develop in the region. "We have established a local office in Thailand and will supply materials from our factory in Kunshan, China. Depending on how our local sales in the region develop, a future production facility in Thailand may become a realistic possibility," says Magnus Lindahl. At the same time, operational activity in the country has already begun. "We are currently renting an office in Rayong where we have hired two people in sales and one in finance and HR, who have already started working on site," he adds.
Closer to regional customers and the Japanese automotive sector
According to the company, starting operations in Thailand was the natural next step. Its presence in Rayong is intended to enable faster and more direct service for customers in the region, while also improving the company’s ability to provide local technical support and advice. The company also indicates that this location is important from the perspective of cooperation with both existing and prospective customers.
"Establishing a presence in Rayong will bring us closer to both existing and prospective customers. What makes Rayong particularly interesting is that we will have the opportunity to strengthen our position with Japanese end customers, especially suppliers to the Japanese automotive industry," says Magnus Lindahl.
The possible launch of Polykemi’s third production plant in Asia would also have broader significance for the group’s global operations. The company emphasises that a presence on three continents would allow it to serve customers worldwide using the same materials, both those based on virgin raw materials and recycled plastics. "Our presence on three continents enables us to serve customers worldwide with the same high-quality materials based on virgin or recycled plastic. We have customers in the US and Mexico with suppliers in Thailand, which we will now be able to work much more closely with. A future factory in Rayong would strengthen Polykemi’s global position," states Magnus Lindahl.
Regardless of the market, Polykemi Group always strives to give the highest priority to safe workplaces and a strong corporate culture. Photo from the 20th anniversary in Kunshan, China
The importance of corporate culture when building a new unit
Polykemi states that, at the initial stage of operations in Rayong, an important element will be the social dimension of sustainability. The company points to the importance of building a stable working environment and a coherent corporate culture, which is intended to support the long-term viability of the new unit.
"As a family-owned company, Polykemi wants to foster a sense of community and a healthy corporate culture. When we started operations in China, we devoted a great deal of attention to understanding a society that was entirely new to us. Today, this means, for example, that our employees and their families benefit from health insurance if, for some reason, they are not covered by China’s own health insurance system, for example after a relocation. This has resulted in very low staff turnover in China. We will be looking at the possibility of implementing similar initiatives in Thailand," says Magnus Lindahl.
As the company representative adds, "no matter where in the world you come across us, you can be sure Polykemi is committed to being a safe employer and a responsible supplier."
