Bangkok--3 Dec--PR & Associates
Leadway in a joint operation with Japan-based Sumitomo Construction Machinery Co., Ltd announces to capture more shares in the excavator market, with a hope to achieve 500 units in sales this year and increase 6% in 2016. To strengthen its reputation, the firm has invited local media to visit a Sumitomo factory in Tokyo, Shiba to know of its product line and world-class manufacturing facilities.
Chakart Seanchan, managing director of Leadway Heavy Machinery Co., Ltd, Thailand's exclusive distributor of heavy machinery from Japan under the brand of Sumitomo, says the firm is currently playing an increasing role in this market.
"Leadway has operated its business in Thailand for 3 years. Its flagship product sold in the market is Sumitomo excavator. It can serve every demand of clients, which includes small-sized excavator for 8-20 tons, medium-sized excavator for 20-40 tons, and big-sized excavator for 40-80 tons. Sales of all products have grown year on year."
"Under heavy machinery, there are two types of products marketed in Thailand – excavators and pavers - which are categorized over weight and work capacity. A strong point of Sumitomo excavator imported by Leadway is its effective technology of hydraulic system, with strong excavating. Most importantly, it offers more energy saving than other brands because it is built to use for maximum productivity. Benefits are offered, which include a product guarantee of 25,000 hours for use, or one year, as well as a free maintenance of 7,000 hours and free labor and part fee.''
For its business performance, Leadway has intended to grow increasingly every year. In 2015, the firm projects to achieve 500 excavators in sales, and with a sales increase projection of 250 excavators and 25 pavers making a total of 750 excavators in 2016 sales.
To achieve this goal, Chakart points out that "the firm will adopt more aggressive business plan to capture potential clients in the provinces, thanks to the growing number of infrastructure development and construction projects in the industrial estates in the Special Economic Zones. Currently, the central region is important to Sumitomo excavator market as it contributes the highest sales of 42% to the company's total sales, mainly from the type for 35 tons and 48 tons, while the southern region contributes 27%, and northeastern 20%.
Next year, the firm will also penetrate the northen market with outside-in winning approach. With only 3-year young operation in Thailand, Leadway operates each region with experienced sales and brokers team who know their provincial markets well including the three provinces in the South.
At the same time, Leadway monitors and follows up the government's policy and national economic and investment plan in the infrastructure sectors: public utilities, irrigation system, high speed train, mining which will contribute and push the growth of construction industry, particularly excavators sales. Leadway views that the better economy is based on the development of fundamental basis.There are still a lot in Thailand to develop, expand and restore, especially the issue of water management is vital for the government to tackle."
Mr. Mikio Ide comments on the hydraulic excavator market in the Asian region that, "In addition to big player markets like Japan, China, North America and in Europe, the Southeast Asia market including Thailand, is considered equally important. In order to truly meet and respond to the needs of the target customers in Asia, Sumitomo established a production plant in Indonesia four years ago offering variuos product models to Thailand and other Southeast Asia countries.
Thailand is a market with huge demand for hydraulic excavators and is the second largest in Southeast Asia. Sumitomo has committed to meeting Thailand's increasing demand with world-class quality products and business presence.
Over the last two years, Sumitomo has pioneered the market with the launch of SH130-5 MaCan which are the first products designed for use in countries in Southeast Asia, especially in a region with constant growth in palm oil industry like Indonesia, Thailand and East Malaysia. The market in Japan itself, for the first half of this year Sumitomo has a market share of 12%, which is a great achievement to be proud of. We expect to build on this strong business in Japan and other countries, including Thailand."
Mr. Kazuhiko Sasaki further explains, "Sumitomo's hydraulic excavator business has entered Thailand about for more than 40 years with the sales of second-hand excavators, shipped from Japan to serve the gemstone mining industry in Kanchanaburi. The Sumitomo excavators have been widely accepted in the shrimp industry in Krabi and Phuket. In the last three years, with business partnership with Leadway, Sumitomo's hydraulic excavator market has been enlarged. This year we have a market share of 7% in Thailand and is increasing. Such success is due to the recognition of the quality of the product, customer care and professional counseling, as well as after-sales service to 7,000 hours of use after delivery. We are confident that success will continue growing. And we are honored to continue support the blooming of the heavy machinery industry."
The future investment plan, Leadway will spend at least 50 million baht in product import and expand four more branches to serve target customers and increase services in addition to the current six locations in Lampang, Khon Kaen, Ubon Ratchathani, Nakhon Si Thammarat, Surat Thani and Bangpakong. Leadway will also increase its workforce to accommodate market expansion and offer after-sales services.
Not only investment in Thailand, Leadway will focus on foreign markets as well with stronger business presence in Myanmar. Currently the company has sold 100 units and expects to reach 120 units by the end of 2015 with 150 units target for 2016.