Firms flaunt French connection

Watcharain Nisagornsen, co-chief executive of Double A (1991), a Thai paper manufacturer, said its French subsidiary DA Alizay recently received approval from the French government to pursue a bio-energy project. Using 100 per cent biofuels, the project will generate 30 megawatts of electricity.
The power plant will require an investment of up to 50 million euros (nearly Bt1.9 billion) and will sell all its electricity to the national power grid, giving DA Alizay additional income, he said.
DA Alizay, which runs a pulp-and-paper mill in Eure, Normandy, is Double A’s first overseas paper mill. 
The Thai company reportedly acquired the mill from the French department (province) of Eure for 18 million euros in January 2013 and managed to restart its production four months later, through using short fibres imported from the group’s facilities in Thailand.
Watcharain, who is also president of DA Alizay, told the “Invest in France” seminar held at the French ambassador’s residence |on Thursday that the company would shortly put the “Made in France” label on its paper reams that are shipped to stationery shops and retailers in France, as well as to customers in other countries in Europe, Africa and Middle East.
“We’re happy so far. It’s a very good asset and a stable operation.
“Before we came in, strikes were an ‘international sport’ in France. So far, no problem. No strike yet,” he said, praising strong support from the French and Thai governments that the company had received since the beginning.
Chanintr Chalisarapong, senior vice president of Sea Value, said the company was negotiating to buy another tuna-processing plant in France that currently employs about 500-600 people. But if the talks are not satisfactory, it will move to double the production capacity of Sea Value Atlantic, the subsidiary it already owns in that country after acquiring it in October 2015.

‘Investor-friendly’
The Sea Value executive said French small and medium-sized enterprises in the fishery sector were friendly to foreign investors since they had realised that could not survive without partnerships with Asian canneries.
“The key point is that SMEs have limited markets in France. Through partnering with us, they can expand their markets,” he said.
Chanintr said he would like to encourage medium-sized Thai companies to invest in France, especially in industries in which French firms are strong, such as bio and organic and cosmetics.
He advised investors not to worry that only big companies could do business in France. For anyone looking to acquire a company worth less than 10 million euros, he suggested France was the best place to invest. 
Arnaud Bialecki, country |president of Sodexo Thailand, told The Nation on the sidelines of the seminar that Thai investors could also look at French soccer clubs, which are of very good quality while not being as expensive as British teams. Hong Kong-listed Ledus, for example, last July bought second-division Sochaux from Peugeot for 7 million euros.
Kongkrapan Intarajang, PTT Global Chemicals executive vice president for international business, told the seminar the group’s accumulated investment in its French subsidiary Vencorex was now close to half a billion euros, if counting an initial investment of 200 million euros and additional funding support from the parent firm that had been put into the subsidiary.
“When we acquired the company, as certain technologies became outdated, we managed to close certain factories and expand in other parts. Now we’re No 2 in our area. Along the way, it was not rosy but it was a good experience,” he said.
A Thai executive told The Nation that companies looking to invest in France should study the country’s laws and regulations carefully, since a major Thai liquor company was having problems with its acquisition of a French liquor firm due to an internal conflict between that firm and its parent.