Thai Summits plans Bt9 bn boost to parts plants
Thai Summit Group this year will spend Bt9 billion on expanding the capacity of its parts plants both at home and overseas to cash in on the fast-growing automobile industry. Of the total, Bt5 billion will be for starting new construction phases at its p
The firm is bullish on the local auto industry over the next two years as at least 10 eco-car models will be launched. Also, passenger cars and pickup trucks are in high demand, vice president Sakulthorn Juangroongruangkit said yesterday.
The auto industry is expected to roll out 2 million units this year and 3 million in 2015.
The other Bt4 billion will be poured into high-potential countries such as Indonesia, Vietnam and India. Its Vietnamese plant produces motorcycle parts.
Indonesia is very promising because sales of passenger cars there have been booming and it now surpasses Thailand.
So far, the firm is not interested in investing in Burma.
The group runs almost 50 plants locally and internationally. Some are wholly owned and some are joint ventures.
Its expansion plan will help strengthen its business in the region before the full establishment of the Asean Economic Community in 2015.
Last year, its local sales were flat at Bt22 billion. The firm blamed the big flood for cancelling customers’ orders. In the last quarter, the company lost Bt3 billion to Bt4 billion in sales. Combined with overseas sales, its total sales reached Bt50 billion.
This year, its sales are expected to increase 20 per cent to Bt60 billion, in spite of the rise in the daily minimum wage to Bt300 in April.
The firm would seek ways to increase its productivity and also use automation to help cushion the impact on operating costs from the wage hike.
Since the group employs more than 10,000 people, the new wage will push its operating costs up 2-3 per cent.
