Advance Agro hopes to overcome chequered past with global brand

Despite its scandal-ridden past, Thailand's Advance Agro hopes to create an internationally respected brand of paper that can command a premium price by taking the high road of environment-friendliness and corporate social responsibility.

Advance Agro, one of the country's biggest pulp and paper manufacturers, was delisted from the Stock Exchange of Thailand in late 2007 to restructure its businesses.

The firm said it had an environment-friendly business model of contracting Thai farmers to grow trees in a way it said benefited the farmers and lowered its costs.

Advance Agro's branded flagship product, Double A copy paper, commanded a 20 per cent price premium in Thailand and abroad, said Thirawit Leetavorn, a senior executive vice-president of the firm's Double A Holdings subsidiary.

Double A paper was first sold in Thailand in 2000. Now it is sold in 100 countries, including China, Singapore, Malaysia and Australia.

Two-thirds of Double A's paper sales now come from outside Thailand. Advance Agro's revenue was about 20 billion baht last year, of which Double A paper accounted for the majority, said Leetavorn. Double A paper was produced from eucalyptus trees planted by 1.5 million contract farmers in Thailand, he said.

'We grow trees in areas around the farmers' rice paddies, not on commercial tree plantations on huge tracts of land. Double A thinks beyond paper to the environment and corporate social responsibility,' said Leetavorn.