PETALING JAYA — Bosch is looking to strengthen its reach and continued growth from its operations across Southeast Asia as the company looks to invest heavily in the region this year.
Peter Tyroller, the Bosch board member responsible for Asia Pacific said that the company would focus on Asean as it sees tremendous growth potential there.
“To support growth in the region, we are planning to invest around RM347 million in Southeast Asia this year,” he said.
Tyroller said in the first half of this year (1H16), Bosch has opened new offices in the Philippines and Indonesia with the aim of being closer to its customers.
The company is also strengthening its manufacturing capacity in the region and plans to expand its Mobility Solutions plants in Malaysia and Vietnam. Additionally, a new plant in Thailand is being planned as well.
Bosch has invested almost RM2.2 billion in the expansion of its manufacturing and development locations in Southeast Asia over the past 10 years.
Last year, Bosch achieved sales growth of 12% in Southeast Asia, after generating sales of more than RM3.4 billion.
The company said that business in the Philippines, Thailand and Vietnam have developed well in 1H16.
“There are many factors in the region that bring forth opportunities for Bosch, these include its large and young population, the growing purchasing power of the middle class, increasing demand for infrastructure, urbanisation, and the need to conserve natural resources.
“The company also sees potential in the area of connectivity and the internet of things in Southeast Asia,” Borsch said.
The company employs some 6,800 people across Asean and currently has seven plants in the region.