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
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
An in-depth comparative analysis of 6 selected countries
- Philippines, Malaysia, Indonesia, Vietnam, Thailand & China
- Expansion recommendation: Thailand
On the ground interaction
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- 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
Hands-on implementation
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- 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
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- 8 year tax holiday from CIT, 50% tax reduction for an additional 5 years
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Cost Reduction â€
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- $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
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Company Growth â€
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- 42% increase in sales over 5 years
- 53% increase in revenue over 5 years
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†Company Forecast
Timely Topics To Drive Growth.
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