Press Release / PDF - Henkel

Press Release
Outperform – Globalize – Simplify – Inspire
Henkel Thailand presents strategy for above-average
growth and stronger brand positions
Bangkok, July 18, 2013 – Today, Henkel Thailand presented the company‘s global and
Thailand strategy for the period up to 2016, which is stated as: “We will outperform our
competition as a globalized company with simplified operations and a highly
inspired team!” The strategy will drive Henkel's successful development in the coming
years in order to achieve its long-term vision to be a global leader in brands and
technologies.
Emerging markets*, which include Thailand, will play an increasingly important role
in realizing the strategy. By 2012, emerging markets already accounted for 43 percent of
Henkel‘s total sales, compared to 37 percent in 2008. Henkel aims to generate net sales
of 10 billion euros from these markets by the end of 2016. In addition, the share of Henkel
employees working in emerging markets is expected to increase to around 60 percent by
2016, compared to around 55 percent in 2012.
Surachet Tanwongsval, President of Henkel Thailand, said, ―Over more than 40 years
in Thailand, our businesses and operations have grown into a regional hub for serving
customers in Thailand, Southeast Asia, Australia and New Zealand, and Japan. This
reflects the high level of trust that regional customers have in our highly capable local
team to deliver world-class excellence in quality, reliability, innovation and sustainability
along the entire business and manufacturing value chain. Building on this strong
foundation, we aim to continue achieving above-average market growth and further
strengthening our brand positions by focusing on four strategic priorities:
Outperform, Globalize, Simplify and Inspire.‖
*Emerging Markets include Asia (excluding Japan), Eastern Europe, Middle East/Africa, Latin America.

Summary of Henkel Thailand’s strategic priorities for 2016
1. Outperform
Surachet emphasized, “Innovation, strong brands and a customer-centered
organization are key drivers that will enable Henkel Thailand to outperform our
competition in our adhesive and beauty care businesses.”
“Today, Henkel is the global market leader in adhesives, sealants and surface
treatments and is strengthening that position. For Henkel Thailand, we have a
strong market position in the local adhesive industry. Our goal is to establish top
market and brand positions for all our key businesses.” In Thailand, the key brands
for Adhesive Technologies are Loctite, Aquence, Bonderite, Technomelt, Teroson, Pritt,
Ceresit and Pattex. In its core business in industrial adhesives, Henkel Thailand will
expand its market-leading position with innovative products that deliver greater
performance and safety but consume less resource. This will benefit many consumer
industry applications, such as diapers, bottle labels, food packaging, furniture, and shoes.
The automotive and general industries are growth businesses. For the automotive
industries, Henkel Thailand will strengthen its structural adhesive solutions for the
production of stronger and lighter vehicles and expand its product range for the vehicle
repair aftermarket. For the general industries, efforts are focused on adhesives for general
assembly and maintenance, repair, and overhaul. For example, in the general assembly of
appliances segment, Henkel is leading in the innovation of liquid optically clear adhesives
for smart phones and tablets, helping to reduce glare while enabling clear picture and
accurate color display.
The Henkel Beauty Care Retail and Professional hair businesses will focus on
innovation leadership and superior time-to-market to establish top brand positions
and drive profitable growth in Thailand. For the retail hair business, the key brands are
Schwarzkopf, Freshlight, Extra Care, Taft and SYOSS. For the professional hair business,
the key brands are Schwarzkopf Professional, Glatt, IGORA ROYAL, Bonacure and OSIS.
In Thailand, the core business is in hair coloring, while hair care and hair styling
represent growth businesses.
In the retail hair industry, the Schwarzkopf Perfect Mousse Foam Color is the only color
foam brand dedicated to perfect grey coverage available in Thailand.
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The SYOSS Oleo Intense Oil Care with thermo-active care formula deeply nourishes hair
and leaving it shiny and smooth and is available as complete range of oil-based hair care
products that comes with shampoo, conditioner, mask and In-Depth Care Oil-Elixir
treatment. The Taft Power Spray Mega Strong (250 ml) was recognized as the
―Best Selling Hair Styling Spray‖ for 2012 by Watsons in Thailand.
For professional hair color, IGORA ROYAL is a technology breakthrough—also available
in Thailand—that delivers perfectly reliable color performance, due to the innovative and
sophisticated High Definition technology. The high performance technology improves the
penetration of the pigments into the hair and the color is now locked into the hair and thus
perfectly sealed. It also ensures up to 50 percent longer color retention and 25 percent
more color vibrancy. In the professional hair styling segment in Thailand, Henkel is a
market leader with its OSIS range. For example, OSIS Dust It is the world‘s first hair
styling powder product that is very popular with hair dressers and hair salons in Thailand.
In line with Beauty Care Professional‘s goal to establish Thailand as ―a land of hair
inspiration‖, the Beauty Care Professional team conducts regular and intensive education
and training sessions for hairdressers and hair salons.
2. Globalize
Henkel Thailand will increase its capabilities as a regional hub for business
development, manufacturing and supply-chain management, including having more
focus on innovation and sustainability projects and delivering faster and more
efficiently to customers. For example, in November 2012, Beauty Care has
established a new Asia Pacific logistics hub in Chonburi. By consolidating shipments
from Germany and products manufactured locally, the hub will serve Henkel locations
across the Asia-Pacific region more efficiently. The hub is expected to produce significant
improvements in supply chain performance by reducing lead time to market, optimizing
inventory levels and reducing logistics costs. As a result of its regional strengths and
Thailand’s geographical location, Henkel Thailand is actively evaluating plans for
entering frontier countries, such as Cambodia, Myanmar, and Laos.
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3. Simplify
Henkel Thailand is committed to implementing best-in-class processes to enable
faster decision-making and greater flexibility across its businesses and operations.
In line with this, Henkel Thailand has transitioned to a new integrated IT platform in July
2013 as part of Henkel‘s initiative to simplify, standardize and harmonize all business
processes across the company globally over the next four years. It will also further
leverage the company‘s Shared Service capabilities so as to benefit from greater cost
efficiencies and allocate more resources toward delivering innovation and other high-value
projects.
For Henkel Thailand’s two adhesive plants in Chonburi and Samut Prakarn as well
as beauty care plant and Beauty Care logistics hub in Chonburi, safety is the top
priority underlying all efforts to improve operational excellence—which includes
high quality, more efficiencies and productivity, greater sustainability, on-time
deliveries and having high-performance teams at all levels of the organization.
For example, an Adhesive Technologies Operation Campus program was set up to enable
plant employees to enhance their knowledge of Safety, Health and Environmental
Protection measures; machines and equipment; instruments in chemical processes; and
Mathematics and Sciences. In addition, a Lean Six Sigma Program was started, under
which the first Green Belt project was to optimize the cycle time for the ethylene-vinyl
acetate (EVA) hotmelt adhesive product.
At the Beauty Care plant, a behavior-based safety program was introduced to increase
safety awareness and build a ‗safety first‘ culture among employees. Notably, in May 2013,
the plant was certified to the ISO 50001:2011 energy management system standard, in
recognition of the plant‘s world-class systems and achievements in reducing energy
consumption. The plant produces hair coloration products for the Asia Pacific region.
4. Inspire
With Henkel‘s strategic priority, “Inspire”, Henkel Thailand is accelerating efforts to
build a strong leadership base as well as strong leadership and talent pipeline. The
focus areas are: Leadership, Talents & Performance and Diversity.
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Surachet said, “A winning culture is defined by a highly inspired team led by good
leaders and a strong talent management program. These factors are critical for our
future business success and in achieving our ambitious targets and making our
vision come true: to be a global leader in brands and technologies.”
Henkel Thailand is actively engaging with employees across all levels of the organization
to help them internalize and put into practice Henkel‘s five Leadership Principles. Top
talents undergo special programs to develop their leadership effectiveness in a multicultural
workplace environment; these programs include career opportunities in different
businesses, international assignments and participation in challenging projects. To
position Henkel Thailand as an employer of choice, the company engages early and
directly with talented students from top universities through, for example, campus
recruitment, management trainee program and the Henkel Innovation Challenge
international business competition for tertiary students.
The company will continue to promote Diversity – primarily in the fields of nationality, age
and gender – as an important factor for success. There are eight nationalities in Henkel
Thailand. Henkel Thailand is also making good progress in increasing the share of women
in managerial positions. Currently, 48 percent of managers in Henkel Thailand are women.
The share of women in managerial positions grew eight percentage points between 2011
and 2012.
About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home
Care, Beauty Care and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market
positions in both the consumer and industrial businesses with well-known brands such as Persil,
Schwarzkopf and Loctite. Henkel employs about 47,000 people and reported sales of 16,510 million euros
and adjusted operating profit of 2,335 million euros in fiscal 2012. Henkel‘s preferred shares are listed in the
German stock index DAX.
Contact:
Maggie Tan
Bhawat Anuwong
Henkel Southeast Asia
Vero Public Relations
Tel. +65 6424 7045 Tel. 0 2684 1551-2 Ext. 16
Fax +65 6266 1161 Fax 0 2684 1553
Email maggie.tan@sg.henkel.com Email bhawat@veropr.com
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