Egger Group acquires minority stake in Thai wood-based manufacturer Panel Plus

Panel Plus’ main production plant is located in Hat Yai in the southern Thai province of Songkhla

With the goal of further strengthening its own market position in Asia, the Egger Group has acquired a 25.1% stake in the Thai wood-based material manufacturer Panel Plus.

The purchase agreement was signed on 30 Nov 2023 and the closing took place on 3 Jan 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, we have found the ideal partner in this respect,” said Thomas Leissing, CFO of Egger Group and speaker of the Group Management in Panel Plus.

“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.”

Panel Plus was founded in 1990 and today produces a wide range of wood-based materials such as chipboard and medium-density fibreboard (MDF) panels, both laminated and unlaminated.

Their main production plant is located in Hat Yai in the southern Thai province of Songkhla. There is a raw chipboard line, two MDF lines as well as in-house impregnation units and 10 lamination lines.

A large proportion of the energy required comes from the company’s own biomass power plants. Panel Plus has additional upgrading capacities at the production site in Samut Sakorn, Thailand, and two further upgrading facilities in Malaysia and Vietnam are currently under construction and will become operational in 2024.

In total, approximately 800 employees at Panel Plus produce a total volume of 800,000m3 wood-based materials per year. Panel Plus is a subsidiary of the Mitr Phol Group, a private group of companies whose main business areas include sugar production, renewable energy, and wood-based material production.

“From the very beginning, Panel Plus has been committed to innovative products and environmental consciousness. Creating added value, a zero-waste concept and sustainable growth was always our focus,” said Amporn Kanjanakumnerd, CEO of Panel Plus.

“We are excited to announce our strategic partnership with EGGER, one of the world’s largest wood-based materials manufacturers. This collaboration will enable us with a wide range of resources and capabilities with cutting-edge technology that we can utilise to better serve our customers.

“By combining EGGER’s deep industry knowledge and expertise with our own local innovative solutions, we are confident this new venture will be beneficial for our customers as we will leverage each other’s strengths with striving for excellence in our pursuit.”

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 Egger Group has an established sales organisation in Asia with its own sales offices in Shanghai, China, Tokyo, Japan, and Ho Chi Minh City, Vietnam.

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.

Both parties are convinced that they can successfully realise growth potential together. They have agreed not to disclose the purchase price and further details of the transaction.