Wee Siew Kim said:" 'Focus' philosophy is beneficial for regional expansion and local market development."

 

Nipsea Group formally started construction of its third paint factory in northern Vietnam's Vinh Phuc Province to grow its market share in the country in June. The six-hectare Nippon Paint Vinh Phuc, which will be in operation in February next year, will produce general industrial paint for automotive and motorcycle industries, marine coatings and resin. The plant will recruit 500 local employees, with a total registered investment capital of $14 million for the next five years.

Nipsea Group, as one of Asia's largest paints and coatings group, adheres to the "Focus" philosophy for managing each market. The philosophy refers to various parts. First, focus on the painting and coatings; second, autonomy to the regional market operation, which means that in each region the local management team is "focused" on the need of its own local market, expanding regional production capacity and adapting strategies to fulfill market expectations.

Currently, the "Focus" philosophy has served the Nipsea Group well, with more than 47 manufacturing facilities and operations spanning 14 countries and regions, including Bangladesh, the Chinese mainland, Hong Kong, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam. Annual production of green paint has hit nearly 1.5 million tons. This year, in addition to construction of Nippon Paint Vietnam's third plant, Nippon Paint Philippines has signed an agreement with Mitsubishi Motors to supply Autoshield products exclusively for Misubishi Motors, and has introduced a new local aerosol brand Pylox and Lazer into Pylox Lazer, Nippon Paint Hong Kong has also made market share gains in the first quarter, increasing 150 percent compared with the same period in 2012. 

Nippon Paint China has also made progress this past 12 months. Besides increasing capacity with new plants Nippon Paint China continues to streamline production and logistics operations, delivering operational efficiencies as part of Nipsea Group's LFG (lean for growth) strategy. The activities of the operational departments are reviewed, and lean practices implemented. The various divisions of Nippon Paint China have also developed production and operation plans to cover a broader part of the value chain. By the end of August this year, 12 materials production bases are expected to be added.

Wee Siew Kim, CEO of the Nipsea Group, said: " 'Focus' philosophy is beneficial for regional expansion and local market development. When one local market grows, it all adds up and the overall business operations will make more significant growth. The LFG strategy will enable the Nipsea Group to provide values for customers and shareholders, while reducing internal waste and meeting customers' needs in a more innovative operating system. In the future, Nipsea Group will continue to meet market and customer requirements with 'Focus' philosophy and LFG strategy.