Singapore, Jan 11, 2012: Alpha Group Holdings, a China-based biotech company, plans to build a US$50-million manufacturing facility in Thailand over the next two years to capitalize on Thai herbs.

Headquartered in Auckland, Alpha Group operates manufacturing facilities in China, New Zealand and Australia for health supplements, functional food and skin-care products. Its subsidiaries operate in 19 countries including Hong Kong, Korea, Taiwan, Macau, the US and Canada.

Singapore, Malaysia, Burma and Thailand are major markets for Alpha, as Asean generates one-third of the company's turnover or about $750 million last year. Indonesia is considered a high-potential market given its population.

Thailand is famous for natural herbs in provinces such as Chiang Mai and Chiang Rai.

"We are considering having a plant in Asean, perhaps in Thailand or Burma, but Thailand is our priority, as the market for weight-loss products and male sex performance enhancers is growing. We will start with a research center first and spend a couple years for market development since we are new in Thailand," said Mr Wei Gao, Alpha chief executive, as he visited Bangkok with a group of Chinese government officials and trade associations to mark the 20th year of China-Asean economic relations. “The Thai plant will be a manufacturing centre for Asean, enabling lower costs and the benefits of free-trade agreements,” Mr Wei added. Alpha Bio-Technology started distributing products in Thailand last year, all imported from New Zealand, resulting in high transportation costs.