Lion Corporation (Thailand) Co will spend about 1 billion baht to build a new factory for home care products and detergents in Chon Buri province to support its growth for the next 3-4 years.
President Boonyarit Mahamontri said the Saha Group subsidiary plans to spend 3 billion baht to increase its production of oral care, home care and personal care products during 2014-17.
Mr Boonyarit says the Saha Group subsidiary will increase production.
About 2 billion baht has been allocated for 2014-16 and the remaining 1 billion baht will be used next year to build a new factory in Sriracha Industrial Park in Sriracha district, Chon Buri.
He said Japan's Lion Corporation continues to invest in Thailand even though the country's economy is not good.
The company has invested here for the long term and is still confident about Thailand's economic fundamentals and infrastructure.
Lion Corporation (Thailand) is a joint venture between Saha Group, the country's largest consumer conglomerate company, and Lion Corporation.
It produces Pao detergent, Systema toothpaste and toothbrush and Shokubutsu shower cream.
"The new factory will be a green plant, the first to grow trees inside," Mr Boonyarit said.
The additional capacity of detergent and other home care products from the new plant will be able to serve the company's business growth for the next 3-4 years.
Mr Boonyarit added that the overall consumer product industry in the first nine months of this year has improved from last year.
Sales of Lion in the first nine months grew by 10% with all product categories showing a better performance and export sales a healthy growth.
"The economy has passed the lowest point and it should start to rise now," Mr Boonyarit said, adding that this is driving the company to expand business locally and internationally.
Mr Boonyarit said Lion is interested in further expanding its consumer product business in the Middle East, particularly in Iran.
"Iran has just opened up, offering huge opportunities for us to expand our business over there. However, the market will be competitive because several companies are seeing the same opportunity and will go there to seize the chance," he said.
Lion Corporation (Thailand) has recently exported its personal care and oral care products to Iran and found that Iranian consumers have good purchasing power.
Apart from Iran, the company will focus more on expanding into Myanmar, Laos, Cambodia and Vietnam to increase its export sales to 30% of total sales in the next five years.
Myanmar, Laos and Cambodia make up 10% of Lion's export sales.
Annual sales are expected to reach 20 billion baht in 2020, with 6 billion from exports.
Lion Corporation (Thailand) expects sales this year to increase by 10% to 15 billion baht, 90% from the domestic market and the rest from exports, mainly to Asean.