Bangkok--6 Jun--JWT Public Relations
‘Sammitr’ joins forces with partners from ‘China and Japan’ to expand into the semi-trailer productions for logistics industry with strong confidence to accomplish its business goals
Sammitr Motors Manufacturing Public Company, a leading local automobile manufacturer and comprehensive transportation business provider, joins forces with China’s number one automobile giant ‘CIMC’ and Japan’s leading conglomerate ‘Sumitomo Corporation’ in a new joint venture, CIMC-SMM Vehicle Thailand Ltd., to operate in the business of semi-trailer productions for logistics industry. The new venture will employ the partners’ strong automobile and transportation backgrounds to establish Thailand as Asia’s logistics hub with plans to tap into all ASEAN markets to accomplish its planned business targets.
Mr. Chao Posirisuk, Chairman of Sammitr Motors Manufacturing Public Company, says that the company has turned public since last April in a regulatory preparation to be listed into the Thai stock exchange at the end of this year. Recently, the company has unveiled its marketing plans for the second half of the year to expand into a new business by joining with its Chinese and Japanese partners. The company has signed a joint venture agreement with CIMC Vehicle Group of People’s Republic of China, a leading manufacturer and distributor of semi-trailers, containers and dry vans for both shipping and storage as well as airport equipment including boarding bridges and Sumitomo Corporation, Japan’s leading conglomerate trading company. The joint venture, named CIMC-SMM Vehicle Thailand Company Limited, is based at the 120,000 square metre manufacturing factory in Phetchaburi province with a registered capital of Bt260 million. Shareholdings include 55% of CIMC, 35% of Sammitr and 10% of Sumitomo with a total of 2,600,000 shares available.
Mr. Li Gui Ping, Deputy General Manager of CIMC Vehicle Group of People’s Republic of China, says that in the initial period, the joint venture will start its business in semi-trailer to serve logistics industry with the production including three main categories of containers including all types of semi-trailers, both with flat and corrugated steel floors, dry vans, reefers, refrigerated containers and tank containers for hazardous chemical substances such as petrol, chemicals, natural gases and liquid gases. The company will focus on tapping into the semi-trailer for logistics industry within the ASEAN countries with planned ratio of 60% local market, 40% international markets and a capacity of about 10,000 units or about US$100 million (Bt3.5 billion) per year.
CIMC is a leading manufacturer and distributor of containers, semi-trailers, storage and shipping containers, and airport boarding bridges who is enjoying about 30% market share locally while its total productions consist of 50% for local markets and the rest for export markets. With its headquarter in Shenzhen, People’s Republic of China, the company has 10 more branches in China and 4 more in foreign countries including the US, the Netherlands, Australia and most recently in Phetchaburi Province of Thailand.
“This joint venture to expand into the container, semi-trailer, and container equipment has been established on our strong vision that Thailand has a strong potential to become the hub for sound transportation and logistics businesses in the Southeast Asia. Also, we strongly believe in the potential of our partner ‘Sammitr’ whose business operating model is comparable to ours and processes exceptional manufacturing and business skills in the automobile industry that has been well accepted internationally through international standard tests. Also, the company is a regional leader in terms of the automobile business as well.”
Mr. Kazuhisa Togashi, Executive Officer of Japan’s Sumitomo Corporation, says that the company engages in variety of products in aspects of trades, investments, financing and so on. The metal related business is one of the core businesses of Sumitomo Corporation. In this joint venture, the company takes part in sourcing out good quality industrial materials including steel and metals into the production of semi-trailers for logistics industry which should act as another channel that will promote the new company’s products well into the international markets in the future.
“With the strong synergies of the three partners along with the joint venture’s clear and active plans for marketing and business, CIMC-SMM Vehicle Thailand should be able to move forward with strength and power and accomplish its targets of business growth as planned,” says Mr. Chao.
For more information, please contact:
JWT Public Relations, JWT (Thailand)
Khun Prasit Kritsadaariyachon (Bob), T: 02-204-8216 or 081-586-2813
Khun Wongchan Tangsongsak (Chan), T: 02-204-8221 or 089-127-2089