BERLIN (AFP) - Henkel, the German maker of Persil laundry detergent, plans a major expansion drive in North America and Asia, its chairman said.
"We want to and plan to develop all of our divisions although our focus is in the United States and Asia," Ulrich Lehner told the Welt am Sonntag.
Lehner said Henkel had "greatly strengthened its consumer goods business in the United States" with its multi-billion-dollar acquisition of Arizona-based detergent and soap maker Dial earlier this year -- the largest takeover in its history.
Lehner said Henkel had better opportunities for growth in the United States than in Europe in the coming years and that the US share of its turnover had surged to 25 percent this year from 12 percent in 2003.
He added that as Asia grows in importance for Henkel, it would have to remain geographically close to its major industrial customers.
"We have seen the transfer of production sites from Japan to Southeast Asia. We are seeing the transfer back from Southeast Asia to China. And we see similar movements in western and eastern Europe," he said.
"As an important supplier, for example for the automobile and electronics industries, we need to follow such moves. A global presence is necessary, particularly in the industrial sector."
Henkel announced in July it was cutting its forecast for sales growth this year to around two percent from an earlier prediction of three to four percent as a result of sluggish consumer demand and fierce price competition.
It said its top priority would be profit targets and market position, rather than sales growth.
In 2003, Henkel booked 706 million euros (868 million dollars) in earnings before interest and tax on sales of 9.436 billion euros.
10/24/2004 - 14:08 GMT - AFP