Siegwerk, a German packaging ink-making giant, is going to open an ink blending centre in Bangladesh this year to expand its footprint in the $100-million-plus packaging ink market.
The centre is expected to start operation in the fourth quarter, the company said.
“Bangladesh is a market with a lot of potential for the packaging ink-making company as the uses of the item is increasing in keeping with the growth of the economy,” said Ashish Pradhan, director of Siegwerk Bangladesh.
He announced the company's plan at a press conference at Pan Pacific Sonargaon Dhaka yesterday.
The blending centre will initially employ 40 people, Pradhan said, without giving any figures about the planned investment.
Siegwerk, based in Siegburg near Cologne, is one of the leading international manufacturers of printing inks and individual solutions for packaging, labels and catalogues with more than 180 years of experience.
It has been supplying inks to printers in Bangladesh from India since the mid-90s.
“Currently, our market share is 8 percent in Bangladesh. Once we start selling our products from the Bangladesh factory at the end of this year, we are expecting 12 percent year-on-year sales growth,” he said.
According to Pradhan, Siegwerk's sales grew more than 20 percent year-on-year in Bangladesh in the last five years, leading the company to decide on setting up the blending centre in the country.
The company is setting up the factory mainly to serve the customers fast as it takes nearly five weeks to bring products from Delhi to the customers in Bangladesh, he said.
Pradhan, also the chief executive officer of Siegwerk India, says the company has established a very good customer base with sustainable growth in Bangladesh and now wants to get closer to the customers supporting them more effectively with individually formulated ink solutions which match their local printing requirements.
Globally, Siegwerk's sales were worth €1.06 billion last year, with Asian countries accounting for 21 percent of the revenue. It employs over 5,000 people in more than 30 countries.