Iggesund to Open Japanese Office

Source from:  Tobacco Reporter 07/27/2016

Iggesund Paperboard has said it is to open a sales office in Japan on September 1 as part of its expansion strategy in the Asia Pacific region.

Over the past year the company has established a service centre with sheeting and warehousing in Taiwan to cut lead times in the region.

"Traditionally, Iggesund has focused very much on Europe but we are now prioritising work to increase our global sales," said Arvid Sundblad, vice president sales and marketing for Iggesund. "For more than a decade we have seen the conversion of packaging for consumer goods move from western Europe to other parts of the world, mostly in the east. Brand owners with headquarters in one part of the world can have the manufacturing of both their goods and packaging in another. This is globalisation in a nutshell and we must adapt to it."

In a press note, Iggesund said that the Japanese paper and paperboard market was known for its high demands on quality. "Iggesund's flagship product, Invercote, will be the cornerstone of the new venture," the press note said. "The paperboard is well established in the highest quality segments in the more than 100 national markets where it is sold. It is made of virgin fibre and meets exacting standards of purity, so it should do well in Japan."

"When we decided to focus more on global sales, one of the first steps was to develop our delivery service outside Europe," said Ivan Chong, president of Iggesund's Asia Pacific operations. "Since then we've built up new inventory and sheeting facilities on the US West Coast and in Taiwan. The result is radical reductions in lead times to Asia."

Iggesund has been represented in both Singapore and Hong Kong for almost two decades and has been successful in building sales over that period. "The improved availability means there are good prospects for the company to reach a wider market not only in Japan but also in the Asia Pacific region generally," the press note said.

"The improved inventory and service are a game changer for us," Chong said. "Now we can be competitive in contexts where before we weren't even an option due to the lead times. We've already gained a number of new orders due to our new delivery capacity.

"We have great respect for Japanese business culture and are therefore only recruiting Japanese staff. "We believe that this factor, together with our long-term commitment, will be decisive to succeeding in Japan." Enditem