Egger Group acquires minority stake in Thai Panel Plus9 January 2024
Egger has made a move to strengthen its position in Asia by acquiring a 25.1% minority stake in the Thai wood-based material manufacturer Panel Plus Co Ltd.
The purchase was closed on January 3. No specific financials pertaining to the deal were disclosed by either party.
“As a significant growth market, Asia plays an important role in our strategic considerations,” said Thomas Leissing, chief financial officer Egger Group and Speaker of the Group Management.
“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 was founded in 1990 and today produces a wide range of wood-based materials such as chipboard and MDF boards, both laminated and raw boards.
The main production plant is located in Hat Yai in the southern Thai province of Songkhla.
Thailand, Malaysia and Vietnam are the core markets of Panel Plus. The core target groups are the local furniture industry and distributors.
Growing market demand, state-of-the-art production technology, and the capacity of Panel Plus, combined with Egger’s input to expand the product portfolio, form the foundation for a collaborative value creation.
The stake in Panel Plus now gives Egger the opportunity to broaden its own market access, address additional customer target groups and further expand availability and service for them.
Egger has 22 production plants in Europe and America.