UBIS has a wholly- owned subsidiary in China and agents in Singapore, Malaysia, Indonesia, The Philippines, Taiwan, Korea, Hong Kong and the US. The company’s competitiveness has helped it achieve significant market shares in the whole region it serves, but particularly in Thailand where it commands a majority market share for water-based compounds for can ends. WR Grace, the world number one, has only about one third of the Thai market while UBIS holds around 65 per cent, “ We compete very well,” said Mr. Dhangwatnotai. “ Because all the packers export their products, they and their suppliers must meet the high standards involved.”

To that end, the company follows stringent quality control and manufacturing processes. It has been ISO 9002 certified since 1998 and product quality meets the requirements of all local and multi-national companies as well as the US Food and Drug Administration and European Food Regulations. It co-operate with multi-national chemical companies such as Vianova/Solutia, Dow, Union Carbide, DSM, Schekolin and others.

WATER-BASED ADVANTAGE
UBIS’s focus on water-based compounds has been a factor of its success. “ In the US, around 80 per cent of the market uses solvent-based compounds. In Asia, however, this figure is reversed with 80 per cent of compounds being water-based,” said Mr. Dhangwatnotai. “ The world can making situation is so competitive, and everyone is keen to cut costs wherever possible, while avoiding any harmful environmental concerns. As a result, the issue of water-based compounds is becoming more prevalent.”

However, price wars are not confined to can makers. This year the cost of chemicals and raw materials, sourced by UBIS from the US, Europe and beyond, has risen 10 per cent. But the company is unable to pass on this cost to its customers. “Instead, we are aiming to expand. By doing so, we will lower our costs by increasing production-this should lower our overhead costs. Because we started out as a small company, we have plenty of room to expand.”

In China, expansion has taken the form of a wholly-owned subsidiary which, according to Mr. Dhangwatnotai, has taken a significant market share in southern China from its main competitor. This strategy of establishing itself firmly in China is well timed. With china now a member of the World Trade Organization, the country is opening up its market, enabling foreign companies to set up bases there more easily.

“ We intend to continue our expansion by setting up a number of subsidiaries in this region within the next year,”  Mr. Dhangwatnotai concluded. “So we will become a regional company, rather than a local Thailand company.”