JWD and Siam Motors Industries have announced the joint venture (JV) firm Siam JWD Logistics. The goal of the new venture is to offer auto parts logistics services to upstream businesses and the company is forecasted to have a first year revenue of THB 50m.
Mr. Pratanwong Phornprapha, President of Siam Motors Industries said,“The formation of the firm jointly with the specialized partner is a major step in our campaign to expand our business. It will create healthy growth and enable us to expand our business in Thailand and other ASEAN markets in a sustainable way.”
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, noted that JWD has pressed ahead with expansions to achieve growth results and secure leadership in the ASEAN logistics market in the future.
“This joint undertaking is another crucial step in expanding our business of providing integrated logistics services for upstream and downstream automotive and connected industries. It will allow us to offer automotive storage and management solutions to automakers not only at our own plant but also at customers’ plants (as on-site services). It will also move us towards the upstream sector (i.e. manufacture of automotive parts), a huge segment as Thailand is a regional hub of automotive parts industry. We see that our extensive knowledge about, and expertise in, the automotive industry will enable us to enhance logistical efficiency and reduce operating costs of the local automotive parts manufacturers,” he said.
In 2017, the automotive logistics business is expected to benefit from a recovery in the automotive industry as – for some of the more than one million cars covered by the Thai government’s first-time car buyers subsidy programme – the five-year transfer restriction period under the programme has expired, and some cars have been allowed to change hands since mid-Sep. This has created demands for new cars to replace old ones.