“There are a lot of growth opportunities for Silesia in the South East Asian market, which became one of the largest economies in the world,” said a statement from Silesia-Gerhard Hanke GmbH & Co. KG.
“At the same time, the demands of our customers are increasing. Therefore, it has become crucial for Silesia to invest in a local production plant in South East Asia.
“Due to our positive experience with our existing set-up and the strategic location in South East Asia, Silesia management embarked on Singapore as a second headquarter after Germany.”
Advantages of local production
Jorgen Hejl, managing director of Silesia Flavours South East Asia Pte Ltd, said, “With the shorter delivery times from Singapore we are able to further improve service levels to our customers in the South East Asian region.”
The company further said that South East Asian population growth, combined with a continued migration from rural to urban areas, has led to changes in consumer behaviours.
It added the advantages of local production include the ability to offer the same high quality of flavour as in Germany, a considerable reduction in the lead time of the company’s products, a decrease in freight costs, as well as duty-free deliveries within South East Asia.
New regional headquarters
Silesia recently inaugurated the new regional headquarters after 15 months of construction.
The previous company “domicile” in Singapore comprising laboratories and offices has been replaced with a brand new production plant and innovation centre, employing about 65 people.
“Singapore as manufacturing hub makes sense. We can supply every country in Asia fast and cost effectively from here,” said Hejl.
“The city state also attracts by its political stability and clear rules and regulations.”
In the new 16,000m2 building, production, research and development, flavour application as well as sales and marketing divisions are all housed under one roof.
Production is mainly centred upon liquid and powder flavours.
The company recently said the production of liquid flavours is already up and running and the commissioning of the process equipment for powder flavours is ongoing.
It added that the new factory uses the same process equipment that is used in Germany, “which simplifies production transfer”.
In addition to the new plant in Singapore, Silesia also has a production plant in Shanghai, China.
Silesia is a 100-year-old family-owned German flavour house that aims to provide high quality and sustainable flavours for the confectionery, bakery, savoury, beverage and dairy industries.