Avery puts US$12m into headquarters
ADHESIVE material manufacturer Avery Dennison is investing US$12 million to build headquarters in Hong Kong in a bid to expand the group's business in the Asia Pacific region.
The company intends to pay particular attention to China and the emerging economies of Southeast Asia.
The group's total investment in its Tseung Kwan O headquarters will reach $100 million after five years. The investment involves installation of new electronic and satellite facilities.
Chairman and chief officer Charles Miller said the headquarters would carry out regional operations and manufacturing processes to cater for the needs of the growing Asian market.
'The headquarters is to ensure consistent quality of our products and to provide excellent customer services,' Mr Miller said.
The new plant will be completed next year and start production in November.
The group forecasts that the plant will contribute $75 million of business turnover within three years of its completion. Mr Miller said the group's manufacturing plant in Kunshan, with initial investment valued at about HK$125 million, would not make a profit this year.
'It is too early to talk about profit - we can now only aim at building up company image,' he said.
He said profit could be made after doubling the plant's production capacity within the next three years.
Mr Miller expected the Asian market to contribute 25 per cent of business turnover to the group by the end of the decade.
'It will bring about US$500 million in sales in the coming five years,' he said.
The group has a five-year plan of expansion, including setting up distribution centres in Beijing, Jakarta and India in the next 18 months.