Corporate - 19/06/2012

ECCO Acquires New Land in Thailand

ECCO Thailand acquires land on new higher grounds in the Saraburi province after the severe flooding last year.

Danish shoe manufacturer ECCO has acquired a large plot of land in Saraburi, 86 km. from Bangkok, and will later this year start the construction of a new production facility here.

In October 2011, Thailand suffered a serious disaster, which also significantly af- fected ECCO. The water surrounding ECCO’s shoe factory and leather tannery in Ayutthaya rose from zero to three meters in just 24 hours and in one fell swoop 35% of ECCO’s global production capacity was put out of action.

“We need to ensure a more stable and flexible production during the monsoon, enabling us to live up to customer expectations at all times,” says ECCO’s Chief Operating Officer Michael Hauge Sørensen.

The newly acquired land is situated some 5.5 meters above sea level and ring- fenced by a dyke of an additional 3 meters. The land in Saraburi has never flooded before and is situated close to a major highway and easily accessible from both Bangkok and ECCO’s current premises in Ayutthaya.

“We are committed to our dedicated workers and to Thailand. To protect ourselves and our customers from disruption in our production, it has been important to us that our heavy machinery is placed where we have the lowest risk of flooding, as this reduces our vulnerability to disruptions in the production,” says Michael Hauge Sørensen. “We will continue to manufacture uppers at our current facilities in Ayutthaya and Phichit”.

The land that ECCO Thailand has purchased covers 87,334m2 or 54.59 rai and is situated in the Saraburi province in the Hemeraj Industrial Estate. The developer ‘Hemarai’ is the largest Industrial estate developer in Thailand.