Bangkok--3 Jun--Aziam Burson-Marsteller
THB 9.4 billion (217 million euros) in third party sales in Thailand„ Bosch expects positive development in Thailand for 2015„ More than 1,100 associates in Thailand as of April 2015„ Further expansion of local production in the Mobility Solutions sector
Thailand continues to be the top revenue contributor in Southeast Asia for Bosch, a leading global supplier of technology and services. The company generated THB 9.4 billion (217 million euros)* in sales to third-parties within Thailand for fiscal 2014. Including sales of non-consolidated companies and internal deliveries to affiliated companies, Bosch’s total net sales in Thailand grew to THB 12.7 billion (295 million euros). “Thailand continues to be an important location for Bosch, both as a production base as well as a market for our products and services,” said Joseph Hong, managing director of Bosch in Thailand.
The company’s workforce grew to more than 1,100 associates as of April 1, 2015. This includes associates after the acquisition of BSH Bosch und Siemens Hausgeräte GmbH (now BSH Hausgeräte GmbH).
Bosch takes long-term view on Thai market – expanding local production
According to the Bank of Thailand, the GDP of Thailand expanded by only 0.7 percent in 2014; exports dipped 0.5 percent over the same period, and are estimated to grow by one percent in 2015. The Federation of Thai Industries reported the 1.88 million cars manufactured in Thailand marked a year-on-year decline of 23.5 percent in 2014, while domestic automotive sales suffered a steep decline of 33.7 percent. “Bosch takes a long-term view of the Thai market. We believe that the steps taken in 2014 to further grow our operations, and the anticipated improvements in the local economy, will bolster our performance in the domestic market in 2015,” added Hong. In addition to weakened economic indicators, the country experienced an increase in political uncertainty and a fall in consumer confidence.
“Despite the challenging situation in the domestic market in 2014, we further expanded our strong base in Thailand,” added Hong. In 2014, Bosch has continued to seek appropriate opportunities to expand its businesses and production capabilities in Thailand. A key example of this strategy can be seen in the Mobility Solutions business, which was formerly named Automotive Technology. Bosch localized the production of its anti-lock brake system (ABS), electronic stability program (ESP®), and power train components in 2014.
Development of Bosch business sectors
Bosch’s Mobility Solutions business sector experienced a weakened domestic automotive market due to lowered consumer confidence and the termination of tax incentives for sales of new passenger cars. At the same time it achieved a stable performance in its export of automotive components in 2014. The Automotive Aftermarket broadened its distribution network, geographic coverage, and product portfolio in Thailand, achieving strong growth in its up-country operations beyond Bangkok.
There was a strong development in the Industrial Technology business sector in 2014. This was largely attributed to growing demand from automotive and food processing facilities to expand and modernize manufacturing lines in anticipation of improvements in the local and global economies. Bosch also benefited from ongoing requirements throughout Thailand for reliable electricity infrastructure.
In a challenging economic environment, the Consumer Goods business sector performed well, driven by Bosch’s innovative range of products such as professional laser measuring devices and high performance cordless tools, as well as an increased online sales presence. The Energy and Building Technology sector expanded its security and communications product portfolio and will continue to do so in 2015.
Bosch contributes to Thai society
Bosch’s long-term social activities in Thailand lay the foundation for a better quality of life, both for current and for future generations. A key example is the Bosch Mechatronics Apprenticeship Program (BMAP) in Thailand that allows Thai vocational students to apply theoretical knowledge to hands-on work experience at the Bosch Packaging Technology manufacturing plant in Chonburi. Furthermore, Bosch contributes to the Thai society through its collaborations with
Primavera, its international in-house charitable foundation founded by former associates. The “Skills for Life” program for example provides a safe living and learning environment to empower hill tribe teenagers in Chiang Mai to acquire the skills they need to succeed on their own. Bosch and Primavera also support the Hand-to-Hand shelter in Pattaya, which houses underprivileged infants and young children while providing them with proper nutrition and early access to educational resources.
Bosch Group business outlook for 2015
The Bosch Group expects global sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2015. Speaking at the company’s recent annual press conference in Germany, the Bosch CEO Volkmar Denner said: “Our economic and technological strength in established business fields is enabling us to tap into new market segments.” Web-enabled products and internet-based services are one of the focal points of the company’s future business. “We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” Denner added. In 2014, Bosch launched many new products and connected solutions, including software solutions for smart heating systems and buildings as well as for connected industry and connected mobility. With the complete acquisitions of BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH, Bosch has strengthened its position in the fields of smart homes and automated driving.
Asia Pacific: growth region number one
In Asia Pacific, Bosch grew its sales 17 percent (19 percent after adjusting for exchange-rate effects) in 2014, to THB 560 billion (13 billion euros). At just under 27 percent of total sales revenue, the region’s share of sales reached a new high. Sales growth was especially strong in China, rising a nominal 27 percent to THB 276 billion (6.4 billion euros).