Bangkok--7 Dec--TMB
Mr. Piti Tantakasem (Middle Right), Chief Wholesale Banking Officer and Mr. Pirapong Nithikraiwut (Right), Head of Multi-Corporate Banking Segment TMB, recently signed a loan agreement with Mr. Yeap Swee Chuan (Middle Left), President and CEO AAPICO Hitech Public Company Limited and Ms. Xin Rhu Yeap (Left), COO AAPICO Forging, of AAPICO Group to provide long-term financial support in the amount of 830 Million Baht under the Contract Financing Program to support AAPICO Group's selection as a key automotive parts supplier to many major car manufacturers.
Mr. Piti Tantakasem, Chief Wholesale Banking Officer, TMB stated “Statistics have shown significant figures in the Automotive Industry, with car sales already reaching 7.38 hundred thousand units in the first seven months of this year. This is a result of a continuous demand seen in the market. The needs of the automotive industry in the country are escalating, partly as a result of government policy and popular new cars. With the production capacity returning to normal and increasing in some quarters, more cars can be delivered to customers.”
The bank regards the Automotive Industry as one of the most important industries in the economy. The growth of the automobile market would still be struggling if there was a lack of valued partners in the Supply Chain who are responsible for the production of quality parts. It is also an achievement in its own right, how AAPICO Group has won the confidence of major car manufacturers who have selected them through the years, as their key automotive parts supplier. TMB is confident in AAPICO Group’s vast experience and reputation, as well as the company’s great resilience in recovering from the floods late last year. Within 4 months the company’s Ayutthaya Plant was able to return to its full production capacity on February 16, 2012.
With the bank foreseeing a positive trend in the automotive industry, it is important that all key players in the Supply Chain are served. Once a supplier has been chosen to manufacture parts, a high level of investment is needed in order to develop the dies or molds and assembly jigs as well as other raw material commodities. The company must rely on its own in-house technology as well as advanced technologies that can only be provided by suppliers who specialize in those specific areas. Therefore, TMB has planned to support production throughout the Supply Chain by providing financial support to car manufacturers, first tier automotive parts suppliers and suppliers in further tiers down the chain for the amount and timing that are aligned with the contract. Led
Mr. Yeap Swee Chuan, President and CEO AAPICO Hitech Public Company Limited said “During the 2011 floods, even though we already had plans in place for a defensive line around the plant to protect us from the flooding, we could not resist the tides. We were under 2.2 meters of water which led to a complete halt in the production of parts at our Ayutthaya factories. As a supplier who produced parts for almost every major car manufacturer, our job was made even more difficult as we had to move the dies to other plants of the company to continue production. It was our main concern to resume production as soon as possible because the car manufacturers, who are our clients, needed to resume production as quickly as possible as well. It was in February 2012, that the company’s Ayutthaya plant was able to return to full production capacity. As a Group, we were among the first to fully recover, leading to heaps of praise from many car manufacturers.”
I am very pleased with the automotive policy of the government and excellent Thai labors laws that brought automotive success to Thailand. Thailand's automotive industry is likely to grow with the launch of new models. Moreover, the availability of labor and personnel in Thailand is also an important factor in driving the success of the industry. The group also plans to continue investing, especially with the clear signs from the government for expansion in the automotive industry. Many car companies have also planned to produce new models, and as a manufacturer of auto parts, we must be able to accommodate the planned orders that will increase over time through our technology and cost competitiveness.
In terms of financial support, TMB have played an important role in driving not only our business, but our partners’ businesses in the Supply Chain as well. Such financial support bodes well for the future and will further enhance the production efficiency for our business partners in the long run.
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