Going Local

On January 22, Cermex officially opened its South Asian subsidiary in Bangkok, Thailand with a sales and services team. This came after having a local team via a representative office in Bangkok for the last six years.

Says Marc Daniel, vice president sales and services: "Cermex SAP should now be a great platform to boost our capability to better serve the South Asian market. We want to act locally, under local market conditions and with the local market's way of doing business." Michel Nigrowsky, Asia Pacific sales manager, Cermex South Asia Pacific, says there are now more than 400 machines installed in Asia. He says the new legal entity will bring new opportunities such as licenses for sales, services, manufacturing and engineering to the company and its customers.

He tells Asia Food Journal more of the business climate in Thailand.

AFJ: How do you feel about the business climate in Thailand?

Nigrowsky: It is similar to other countries in South Asia and unfortunately, Thailand is largely infl uenced by the economical crisis worldwide. While there have been some political events that have put a shadow on foreign investments recently, they do not adversely affect our business as the market remains reasonably dynamic with a high potential to rebound.

Staff at the new subsidiary in Thailand provides local assistance in aspects such as technical help and spare parts.

AFJ: What opportunities do you see in Thailand?

Nigrowsky: The packaging industry is highly fragmented. In the end-of-line packaging automation industry for example, there are numerous small companies with 20 to 100 staff working on case-bycase projects with no long term view in a specific geographical zone. The crisis will put more constraints on the business climate and companies without a local presence in export markets such as Asia will feel a greater impact. With our local base in Thailand and teams in Indonesia and India, we are positioned competitively in this region.

AFJ: What challenges do you foresee in Thailand for your business this year?

Nigrowsky: It will be the tough market conditions. Labor costs remains as the main ‘competitor’ for the end-of-line automation business.

Michel Nigrowsky, Asia Pacific sales manager, Cermex South Asia Pacific, at the inauguration of Cermex SAP in Bangkok, Thailand on January 22 this year.

AFJ: What are your strategies on overcoming these challenges?

Nigrowsky: Be local. With a team of engineers who are trained on our range of machines, we are now able to manage complex installation jobs in Thailand. Our new subsidiary in Thailand also provides local assistance in aspects such as technical help and spare parts. We also have a local manufacturing facility in China that produces some key machines.

AFJ: How can Thailand's F&B industry grow despite the current economic situation?

Nigrowsky: I am based in Bangkok since 2003 and I have been doing business in Asia for the last 10 years. Despite the changes, Thailand remains stable and it is becoming even more competitive in Asian due to the availability of skilled labor, stable salaries and an ‘openminded’ culture.