Siam Motors Industries, a member of Siam Motors Group, a major automotive parts manufacturing group, and JWD, a leading fully integrated in-land logistics service provider, jointly established 'Siam JWD Logistics' as a joint venture firm to provide integrated automotive parts logistics services (e.g. transport of parts from manufacturing plants to warehouses, parts warehouse management, packing for delivery to automakers' plants, etc.) to Siam Motors Group companies, as well attract new customers. The firm is expected to begin commercial operation in Jan and post more than THB 50m in revenue for the first operating year.
Mr Pratanwong Phornprapha, President of Siam Motors Industries Co., Ltd., 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. He said that the company and AutoLogic Co., Ltd. (an affiliate of JWD InfoLogistics PCL, or JWD) have jointly established a joint venture firm called 'Siam JWD Logistics Co., Ltd.', with a registered capital of THB 20m and three shareholders, namely, Siam Motors Industries Co., Ltd. (a majority stake of 52.5%), AutoLogic Co., Ltd./JWD (42.5%) and an individual investor (5%).
"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," added he.
Mr 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 (as on-site services). 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. Its first year's revenue from supply of services to two (phase I) of the approximately 70 plants of Siam Motors Group customers is forecast to reach THB 50m. 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.