With the goal of further strengthening its own market position in Asia, the EGGER Group acquired a 25.1% stake in the Thai wood-based material manufacturer Panel Plus Co., Ltd. Sustainable international growth is an essential part of the EGGER Group’s strategic agenda. In addition to the production and distribution of its products in Europe and America, where the family company is represented with a total of 22 production plants, the Asian market is playing an increasingly important role. The purchase agreement was signed on November 30 2023 and the closing took place on January 3 2024. The parties have agreed not to disclose the purchase price and further details of the transaction.
“As a significant growth market, Asia plays an important role in our strategic considerations. We have been considering expanding our presence there for some time now. In Panel Plus, we have found the ideal partner in this respect. Panel Plus has state-of-the-art production sites and a product portfolio that is perfectly tailored to regional requirements. We are convinced that we will benefit greatly from their local expertise and will be able to exploit further growth opportunities together. We are delighted with this strategic partnership,” says Thomas Leissing, Chief Financial Officer EGGER Group and Speaker of the Group Management, explaining the background to the investment decision.
Panel Plus Co., Ltd. was founded in 1990 and today produces a wide range of wood-based materials such as chipboard and MDF boards, both laminated and unlaminated. The main production plant is located in Hat Yai in the southern Thai province of Songkhla.
Great opportunities for further development in Asia
Thailand, Malaysia and Vietnam are the core markets of Panel Plus. The core target groups are the local furniture industry and distributors. Growing market demand, state-of-the-art production technology, and the capacity of Panel Plus, combined with EGGER’s input to expand the product portfolio, form the foundation for a collaborative value creation.
The stake in Panel Plus now gives EGGER the opportunity to broaden its own market access, address additional customer target groups and further expand availability and service for them.
The EGGER Group and Panel Plus share the same convictions regarding high product and service quality, responsible production, and constant innovation. Both parties are convinced that they can successfully realise growth potential together.
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