Thai Union Group has decided to close one of its domestic factories, with the seafood major citing Covid-19 as a factor.
The company is to shut the site in Pakpanung in Nakorn Si Thammarat, a city in southern Thailand. The plant, part of Thai Union’s Pakfood business, manufactures crab meat.
Go deeper with GlobalData
In a statement made alongside Thai Union’s first-half financial results, the company said the facility had stopped production on 9 June due to the “increased difficulty of procuring the right raw materials and [the] lack of competitiveness which ensued, as well as [an] impact from Covid-19”.
The factory contributed “less than 0.2%” of Thai Union’s revenue in 2019, which reached THB126.28bn (US$4.07bn), the company said. “We do not expect to see [a] significant impact on Thai Union’s business,” it added, noting the “majority of Pakfood continues to play a vital role in our growth and operations”.
Pakfood is a Thai manufacturer and distributor of frozen food.
In the first six months of 2020, Thai Union saw its sales rise 4.2% to THB64.15bn, helped by bumper demand for its ambient products, which offset declining sales of frozen food.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOperating profit was up 50.4% at THB3.9bn. Net profit climbed 97% to THB2.73bn.
Thai Union, meanwhile, also announced it has moved to acquire a majority position in the Russian venture behind DPR Group, the seafood business that is home to brands including Maguro and Rybar.
