Firm aims to capitalise on its land bank near Suvarnabhumi Airport
Thai Summit Group, a leading auto-parts maker owned by the Juangroongruangkit family, is setting up a property subsidiary to capitalise on the land bank it has bought near the new Bangkok airport.
President Somporn Juangroong-ruangkit yesterday said the group planned to develop a number of projects, including hotels and office buildings, near Suvarnabhumi Airport and the Bang Na-Trat Highway.
Thai Summit will rapidly expand into the property business and expects property to contribute as much as 20 per cent of its annual revenue, currently exceeding Bt20 billion, within the next two years.
Somporn is the widow of the late Pattana Juangroongruangkit, the founder of Thai Summit. Pattana was the elder brother of former transport minister Suriya Jungrungreangkit, who oversaw the Suvarnabhumi Airport project.
A new company, Thai Summit Property, will be set up to spearhead the property projects. Over the last few years, Thai Summit has diversified into real estate by developing a golf course in Laem Chabang and buying a high-rise building in Bangkok.
Somporn said the group's land near the airport was not suitable for housing projects because of its high price but demand for hotels and office buildings in the area would increase.
She declined to reveal how many rai the group had bought but said it would keep purchasing more land in the area, though it would still concentrate on the auto-parts business.
It is aiming for revenue of Bt40 billion this year, up almost 100 per cent from last year, thanks to its expansion locally and abroad.
The group also plans to expand its production in India, Vietnam, Malaysia, Indonesia and China by 2011. It already has plants in all those countries except China.
Somporn said it was constructing its sixth plant in India to support aggressive demand for motorcycle parts.
It has just taken over one facility in Indonesia and bought land to build a new plant in Vietnam. Its feasibility study into investing in China will be completed soon.
The group plans to invest around Bt5 billion annually on its foreign plants and aims to generate revenue of Bt50 billion by 2011. It also expects its earnings before interest, tax, depreciation and amortisation to increase by 20 per cent within the next four years.
Yesterday Thai Summit signed an agreement with Hemaraj Land and Development to buy 318 rai of land at Hemaraj Eastern Seaboard Industrial Estate (Hemaraj ESIE) for around Bt500 million.
Hemaraj ESIE aims to support the expansion of the auto-manufacturing industry on an area of 8,200 rai. It is located near the Eastern Seaboard Industrial Estate in Rayong province, home to General Motors, Ford, Mazda and Toyota.
Somporn said it had decided to buy the land in order to support its new projects. It plans to start expanding its plants in its new area in 2009 by focusing on producing auto parts for four-wheeled vehicles.
The group had planned to list some of its companies on the Stock Exchange of Thailand, but the idea was suspended because of the current political and economic situation.
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