GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION (ASEAN)

GLOBAL FOOTPRINT SERVICES:

GLOBAL EXPANSION (ASEAN)

GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

BACKGROUND

Global firm needed to increase China/Asia manufacturing capacity. EWA was engaged to develop and implement an Asian Manufacturing Footprint Strategy to drive long-term profitability.

GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

APPROACH

Step 1

Identifying the expansion criteria

  • Company analysis
    • Expansion criteria: labor supply/costs, government incentives, inflation rates, availability of raw materials, transport & export logistics, supply chain vendor availability
Step 2

An in-depth comparative analysis of 6 selected countries

  • Philippines, Malaysia, Indonesia, Vietnam, Thailand & China
    • Expansion recommendation: Thailand
Step 3

On the ground interaction

    • Negotiated conditions for property purchase & property management (waste removal, perimeter security, etc.)
    • Negotiated investment incentives with Secretary General of Royal Thailand Board of Investment
    • Qualified local Thai vendors to support the company’s manufacturing location
    • Met with local legal and accounting firms to identify the necessary criteria for establishing a business entity
Step 4

Hands-on implementation

    • Property was purchased and all pre-construction permits/licenses/registrations were acquired by October 2017
    • Plant designs, construction budget/timeline & all construction partner contracts were finalized in November 2017
    • Plant construction and equipment installation began in January 2018 and was completed in April 2019
    • Identification and recruitment of supply chain, distribution & logistics partners was completed in February/March 2019
GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

RESULTS

Government Incentives

      • 8 year tax holiday from CIT, 50% tax reduction for an additional 5 years

Cost Reduction

      • $22.0M tax savings over 10 years
      • $4.3M annual labor savings after 5 years
      • $1.8M annual material savings after 5 years
      • $120/unit average freight savings

Company Growth

      • 42% increase in sales over 5 years
      • 53% increase in revenue over 5 years

 

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