Lamphun: Pandora, one of the world's biggest fine jewellery brands, is continuing its investment in Thailand, its sole production base, with a combined budget of 9 billion baht during 2015-19.
Yesterday, the company officially opened its new crafting factory at Saha Group's Lamphun Industrial Estate in the North.
Nils Helander, senior vice-president for manufacturing and managing director of Pandora Production Co, said the 45-rai factory in Lamphun is its second crafting facility in Thailand. The plant will create about 5,000 jobs.
The opening of the crafting factory is part of Pandora's long-term growth strategy to become a global jewellery brand in the future and support increasing demand.
According to its architect and design team, the Lamphun production site offers some of the best working conditions and is the most modern production facility of its kind in Asia. Having earned the highly-respected LEED (Leadership in Energy and Environmental Design) certification, the new factory meets the highest standards for corporate social responsibility and sustainability.
"This facility will set new standards for the jewellery industry in terms of scale, speed, green profile, and modernity," said Lars Nielsen, the plant's general manager, who led the Pandora team for both design and construction.
The high standards for the new facility mean not only significant cost and energy savings, but also ensure Pandora can fully meet future demand from consumers all over the world.
Anders Colding Friis, president and chief executive of Pandora, said the site in Lamphun is the first in a line of strategic initiatives. Over the next few years, the company will further expand its production capacity in Thailand.
The company is now working on Triple A project, a new factory building at Gemopolis Industrial Estate in Bangkok, which began construction in June last year and is expected to begin commercial operation in the first quarter of next year.
The factory is expected to create about 5,000 new jobs.
The combined investment in the Lamphun facilities and a new factory building at Gemopolis will come from the company's 2015-19 budget.
With the expansion, Pandora expects its total jewellery production capacity in Thailand will increase to 200 million pieces per year, up from 122 million pieces.
Pandora established its jewellery production base in Thailand in 1982, and the country is the only production base for the brand.
The company exports Thai-made jewellery products to more than 100 countries. Revenue was about 100 billion baht last year.
Of the total, 47% came from Europe and Middle East, 34% from the US and 19% from Asia-Pacific, which is the fastest-growing region.
Pandora expects the sales contribution from the Asia-Pacific region will rise to 30% over the next few years.
The company expects its total sales will grow by 10% this year.
"Though economies are slowing in some regions, we are not concerned because we offer affordable jewellery," Mr Helander said.