Chen Zhengwen, chairman of Nanqiao Investment Holdings, said that rice crackers and room-temperature rice produced by Thailand's Nanqiao continue to be in short supply, and it is expected to invest another 2.5 to 3 billion baht in the next three years to expand production lines and warehousing. (Photo by reporter Yang Yamin)
[Reporter Yang Yamin/Reported from Taipei] Thailand Nanqiao, a subsidiary of Nanqiao Investment Holdings (1702), has been established for 35 years, and its annual production capacity has increased 3.63 times since its establishment. Chen Zhengwen, chairman of Nanqiao Investment Holdings, said that Thailand The rice crackers and room-temperature rice produced by Nam Chiau continue to be in short supply. It is expected to invest another 2.5 to 3 billion baht in the next three years to expand production lines and warehousing. It is estimated that the annual revenue of Nam Chiau in Thailand this year is expected to reach 4.5 billion baht.
Nan Chiau Investment Holdings selected Thailand as the group's overseas production base in 1989. The factory was built and officially mass-produced in 1991. Export sales began in 1994. The strategy of "Made in Thailand, global market" was established. Currently, the factory has 14 production lines, including 8 rice crackers, 2 room temperature rice, 2 frozen dough and 2 instant noodle production lines.
Annual production capacity has increased from 9,900 metric tons in 1991 to 45,840 metric tons today, an increase of 363%. Thailand's Nanqiao launched a "five-year, 5 billion yuan" investment project in 2019, driving annual revenue to grow from 2.7 billion baht in 2019 to 4.25 billion baht in 2025, a growth of more than 57% in 6 years.
Thailand's Nan Chiao accounts for 91% of its revenue from exports, which are sold to more than 70 countries and regions on 6 continents around the world. The largest export market is Australia, followed by Europe and the United States. Among them, rice crackers still account for about 60% of the overall revenue, instant noodles account for about 18%, and room temperature rice accounts for the third place in revenue.
Chen Zhengwen pointed out that when you see rice crackers made in Thailand in the European and American markets, they are almost all manufactured by Thai Nanqiao. 70% to 80% of Thai Nanqiao’s business is OEM for major European, American and Australian manufacturers. In particular, the development of baby rice crackers is very successful, and it is the most profitable among all categories.
As businesses such as rice crackers and room-temperature rice continue to grow, "we are once again faced with a happy trouble, that is, insufficient production capacity." The group has once again launched a factory expansion plan and is expected to invest another 2.5 to 3 billion baht in the next three years to expand production lines and warehousing for rice crackers and room-temperature rice.
He also said that Thailand’s Nan Chiau rice crackers and room-temperature rice are exported to markets such as Europe, America and Australia. The network is very complete, but the operations in the Southeast Asian market outside of Thailand are average. He described Thailand’s Nan Chiau as not only a production base, but also a beachhead for the group to enter the Southeast Asian market. Nan Chiau has successively dispatched employees to important markets such as Indonesia and Malaysia. “ASEAN countries are also markets with huge potential.”
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