Bangkok--20 Jan--TEAM
TEAM is confident to grow in 2009 despite global economic decline, making more profit this year. The economic decline benefits EMS businesses since it is more cost effective than brand owners producing their own goods. TEAM reveals receiving high interest from clients. It new factory expansion completed last year is ready to cater for company growth in complete box built product assembly. Therefore, combining the plan to broaden market base, reduce reliance on customers and regions, and increase the number of their personnel, they are certain to raise their sales growth despite the economic slow down.
Mr.Richard Fitzgerald ( Chief Executive Officer ) Team Precision Public Company Limited or “TEAM” said that he was confident that the company would continue to grow following the success in 2008 despite the fallen world economy since many OEM customers are looking to shave costs. Although TEAM expects a decline to its Q1 2009 sales and profit due to delays in receiving material and softer demand, the overall year is on track for growth. This would be beneficial to OEM businesses in electronics because those in the EMS business including TEAM are able to produce goods at lower cost than the brand owners could. Hence, it’s anticipated that several brand owners would choose EMS as a cost effective alternative. In addition, TEAM’s new factory expansion in Prachinburi would accommodate the growth of the company. The company only used 40% of its full capacity; therefore, it could easily scale production proficiency to support growth throughout 2009 and 2010.
“We see that electronic OEM still has the potential to grow strongly in the economy both normal and slow-down stages. In normal status, EMS helps lower total cost of ownership of OEM’s, enhancing our ability to provide value. In economic decline, the ability to lower costs is compounded and it’s likely that OEM’s will choose this alternative to cut down their costs. There are two options when there’s a decrease in sales levels; one is increasing sales level; the other is cutting down costs. When increasing the sales level is difficult to accomplish, cutting down costs would be the way to go at it. We receive positive response after meeting with our clients and new orders start coming in. This is certainly a good sign for TEAM. As well, in terms of shaving costs, TEAM is diligent in cutting variable and fixed areas other than personnel, as people are TEAM’s most important internal asset and critical to the growth strategy of the company under the economic uncertainty.”
Mr. Fitzgerald mentioned that TEAM was fully ready for business expansion and more customers in 2009. TEAM has appointed several top level personnel including supply chain management, HR, and sales representatives In the US, Europe, Thailand, and Singapore; experienced in electronics manufacturing solutions business (EMS), as the company’s executive stated. This was considered an aggressive marketing policy in order to expand its market base, conformed to the policy to increase the number of buyers in different regions monitored by TEAM sales agents and overseas representatives. Mr. Fitzgerald stated bringing needs closer to the customer and leveraging the global economy is pertinent to TEAM’s growth strategy. Importantly, the company’s on the go with full production capacity, not to mention several of its products meeting international standards and accreditations. TEAM’s vision is to be a best in class global Electronics Manufacturing Solutions provider (EMS) — A customer’s strategic Global partner. It’s apparent that the company will grow strongly and continuously following 2008 in spite of world economic decline.
Company Profile : Team Precision Public Company Limited (TEAM)
Team Precision Public Company Limited is in the business of Electronics Manufacturing Services who provides design, assembly and test of electronics assembly and electronics products according to customer requirement. The manufactured products are in the area of industrial control, consumer and specialty products which are mainly for export to more than 10 countries. The company policy is to expand its electronics manufacturing services businesses based on solid growth foundation by adding more value services and provide full range of services to the target customers which will lead to increase profitability and good return in investment for the shareholders. The company also gives emphasis on long term relationship with the customers and its supply chain.
For more information, please contact : Wasara Chotithammarat, Investor Relations
Tel : 02-5772350 ext 106