Siam Motors Industries and JWD have established ‘Siam JWD Logistics’ as a joint venture firm to provide integrated automotive parts logistics services to Siam Motors Group companies, as well attract new customers.
Pratanwong Phornprapha, President of Siam Motors Industries, revealed the decision of his company to make another move in its efforts to secure leadership in integrated logistics service by expanding its business to tap growth in the logistics industry and market in Thailand and other Asean countries.
“The formation of the firm jointly with the specialised partner is a major step in our campaign to expand our business. It will create healthy growth and enable us to expand our business in Thailand and other Asean markets in a sustainable way,” he added.
Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, noted that JWD has pressed ahead with expansions to achieve growth results and secure leadership in the Asean logistics market in the future.
“This joint undertaking is another crucial step in expanding our business of providing integrated logistics services for upstream and downstream automotive and connected industries. It will allow us to offer automotive storage and management solutions to automakers not only at our own plant but also at customers’ plants. It will also move us towards the upstream sector (i.e. manufacture of automotive parts), a huge segment as Thailand is a regional hub of automotive parts industry. We see that our extensive knowledge about, and expertise in, the automotive industry will enable us to enhance logistical efficiency and reduce operating costs of the local automotive parts manufacturers,” he said.
The joint venture firm is expected to begin commercial operation in Jan 2017 and earn revenue immediately. Revenue from non-Siam Motors Group customers is also projected to contribute significantly to the firm’s growth and improve the firm’s 2017 performances in terms of revenue and profitability.
In 2017, the automotive logistics business is expected to benefit from a recovery in the automotive industry as – for some of the more than one million cars covered by the Thai government’s first-time car buyers subsidy programme – the five-year transfer restriction period under the programme has expired, and some cars have been allowed to change hands since mid-Sep. This has created demands for new cars to replace the old ones.