Gunnebo looks to expand above inflation

Sweden-based security service provider Gunnebo Security Group is looking to see its Indonesian business grow by better than inflation, especially with support from infrastructure projects and its newly installed cash-management facility, the company’s regional executive says.

Senior vice president for Gunnebo’s Asia-Pacific region, Sacha de La Noe, said on Tuesday that his company would keep its investment focus on cash-management products, one of the group’s backbone businesses, while at the same time he expected growth from other lines, such as from its fire-system services.

De La Noe said the presence of a local production facility in the country was also expected to have a significant impact on regional sales, with about 70 percent of the local production being shipped to other countries, he added.

“With more cash to handle in society, we need to find more effective ways to manage that cash. In Indonesia, I see a high number of notes in circulation, and retailers are looking for better ways to handle the cash and that will increase,” he said.

The group announced in a press statement dated Jan. 15 that it would optimize its cash management manufacturing footprint by transferring production from its Trier plant in Germany to manufacturing units in Binefar, Spain and in Indonesia, to improve customer service levels and manufacturing efficiency. The Trier plant has turnover of around 9 million.

Indonesia is the second-largest market for Gunnebo in Asia Pacific, with the largest being India. Indonesia contributes around 20 percent to regional sales.

Gunnebo Indonesia country manager Hindra C. Kurniawan said his company’s revenue normally grew by around 10 percent annually. He added that his company expected that local cash-handling facilities would be its backbone in five years.