Siam Kubota budgets Bt2 bn for rehab of flooded factory

The company is upbeat that its revenue will grow by 20 per cent to exceed Bt50 billion this year, thanks to recovery spending after the flood disaster hit the agricultural sector.
Masatoshi Kimata, president of Siam Kubota Corporation, said it still had high confidence to do business in Thailand, although sales were down late last year during the flooding.
He said the company had already restored production at its machinery-parts factory, and expected to start manufacturing tillers in Nava Nakorn Industrial Estate this month.
Siam Kubota imported some parts from Indonesia after operations were suspended on some flooded production lines in Nava Nakorn, although its tractor factory is in Amata Nakorn Industrial Estate in Chon Buri, which was safe from the flood.
The company will import large factory machines to replace damaged ones and expects to be back to full operation by June.
Part of the Bt2-billion budget will be allocated to build flood barriers.
“Thailand is still an important manufacturing and marketing base for the company. The firm will keep on expanding its investment here as there is high potential to support the company’s growth,” Kimata said.
Thailand will start exporting Kubota tractors to North America this year, he said.
The company plans to export 3,500 tractors to target markets this year. This export volume accounts for 10 per cent of the total production in Thailand.
The company also plans to ship its tractors and other agricultural machinery to other countries in Asia and Europe next year.
Siam Kubota currently exports to only three countries – Cambodia, Burma and Laos.
To support the company’s growth, it will increase its production capacity from one shift to two this year. It also plans to build a second factory under the name of Siam Kubota Metal Technology to mould tractor parts after it recently established the first plant in Thailand.
Kimata said the company was optimistic of significant growth this year on the expected surge in spending following the government’s rehabilitation policy to spur domestic consumption. The crop-subsidy policy and guaranteed agricultural prices will help boost the purchasing power of farmers, he added.
An unexpected natural catastrophe is the only concern the firm has this year, as such a disaster could seriously damage crops. He said the government should have a clear plan to prevent agricultural problems arising from drought.
The Kubota Pavilion at the current BOI Fair was built under the concept of agriculture for the protection of the Earth.
Opart Dhanvarjor, senior executive vice president of the company, said the pavilion aimed to boost people’s awareness of the importance of soil and water resources.
He emphasised that the company was committed to manufacturing such products as agricultural machinery, steel pipes, and environmental-management systems to reduce the problems of food and water shortages all over the world.