Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 58,967.1 million yen) announced today that its wholly owned subsidiary Dentsu Tec Inc. (President & CEO: Yasuhiro Matsubara; Head Office: Tokyo) has established a new company in Thailand, Promo Tec IHQ Co., Ltd., to oversee the operations of the Promo Tec sales promotion network across Asia. The establishment of the new regional headquarters was enabled by the government of Thailand's new tax and fiscal preferential policies for foreign capital. Promo Tec IHQ will commence operations on January 1, 2016.
Promo Tec Pte. Ltd. was established in Singapore in October 2011 as the first step of the Dentsu Group's sales promotion business in Asia, and Promo Tec subsidiaries have been established in five other countries across the region. Although growth has been significant in the eight companies that do business in these six countries (India, Indonesia, Malaysia, Singapore, Thailand and Vietnam), continued strong business growth is expected beyond 2016. Business has been particularly robust in Thailand, with Promo Tec Thailand, which was established in 2013, receiving orders for several large-scale projects. The strengthening and expansion of the services provided by the Promo Tec network has become an urgent matter.
In light of these circumstances, and in order to take full advantage of the government of Thailand's policy reviews, the Dentsu Group decided to establish its Promo Tec regional headquarters in Thailand. In addition to a reduction in costs that will be achieved by consolidating the supervision and management functions of all the Promo Tec operations, Promo Tec IHQ will continue to promote the further increase in sophistication of the "Japanese quality" services that are the strengths of the Promo Tec network.
Promo Tec IHQ will work in close cooperation with other Dentsu Group companies in Asia to provide clients with fast, high-quality solutions that address their increasingly diverse and advanced sales promotion needs.
The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2015 is expected to be minimal.
Profile of Promo Tec IHQ
Company Name: PROMO TEC IHQ CO., LTD.
Location: Bangkok, Thailand
Capital: THB 10,000,000
Shareholding Ratio: PROMO TEC PTE. LTD. (Singapore) 99.998%
Toyo Business Service Public Company Limited 0.001%
Toyo Business Capital Co., Ltd. 0.001%
Date of Establishment: November 9, 2015
Start of Operations: January 1, 2016
Representative: President & CEO: Choku Matsukawa
Number of Employees: 5 (tentative)
Line of Business: Supervision and management of Promo Tec companies across Asia
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