Updated on 28 May 2012
When did you first enter the APAC market and since then how has the journey been?
Mr Philipp: The company has been selling its products to customers in APAC for over 15 years. Initially, our sales were mostly in Japan, however, we now sell throughout the region. For most of the years, the percentage growth of our APAC sales has been in double digit. This is partially due to the fact that VP has signed distributors covering Japan, India and Singapore. These alliances have been crucial to our business in the region, given their strong local customer base, understanding of the APAC market, and ability to supply manufacturers with a complete, all-inclusive offering of products and services. This structure has caused any potential challenges of entering a foreign market to be minimal. VP also currently sells directly to the customers in China, South Korea and Taiwan. Again, given the local presence of our sales force, this has helped us avoid most complications.
If APAC is of such high importance to the company, why not have a manufacturing facility in the APAC region?
Mr Philipp: APAC will be very important to VP's business over the next 10 years, and as a result, we are currently evaluating different options for increasing our presence in the region. Given the fact that VP was acquired by Nordson Corporation in September 2011, we will likely have access to a number of resources that will support this growth, such as Nordson's existing offices throughout the region and manufacturing capabilities in several APAC countries. Going forward, these facilities may prove to be very useful. However, we are currently enjoying the advantage of centralized operations within one facility, located in Fort Collins, Colorado. This allows us to comfortably manage and maintain compliance with the significant number of regulations to which our customers' products must adhere to. Another benefit of this consolidation is the advantage of streamlined operations, allowing for great customer service and affordable pricing that our customers enjoy.
Who are the major competitors of the company in the APAC region and what makes Value Plastics' products different from that of its competitors?