Danone is to double the production of dairy products at its new THB572m (US$17.2m) plant in Thailand in order to push into other south-east Asian markets as early as next year.

Tapping the zero import tax under the ASEAN Free Trade Area (Afta), Danone said it will develop products tailored to each market. The company will initially begin shipments to Singapore, then Malaysia and Indonesia.

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The French dairy giant has also revealed that it wants to double sales in Thailand to THB1bn by the end of this year.

”Danone is committed to the Thai market. We see a bright prospect in Thailand,” said Laurent Boissier, general manager of Danone’s local operating unit Danone Dairy Thailand.

“Since we made our first presence in the market two years ago, Danone products have become number two in the cup-yoghurt market in just a few months.”

Danone estimates the value of the Thai dairy-product market at THB14bn.

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