Post on 13-Feb-2020
transcript
David R. Nardone
President & CEO
Hemaraj Land And Development PLC
Bangkok, Thailand
www.hemaraj.com12 September 2007
Thailand Automotive
Investment Opportunities
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 22
AGENDA
I. Thailand Investment Trends
II. Thailand Position in Asian Automotive Industry
III. The Investment Climate in Thailand
IV. The Decision for Thailand Automotive
V. Opportunities for Thailand to Attract Automotive
OEM’s and Auto Suppliers
VI. Automotive Export Examples (If Time)
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 33
BOI Application Approvals BOI Application Approvals (Billion Baht)(Billion Baht)
Source: Board of Investment Source: Board of Investment –– Aug 2007Aug 2007
Applications
Approved1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Jan-Jul
2007
No. of Projects
Total Projects1,205 974 920 647 679 1,111 820 721 839 1,227 1,254 1,222 768
Automot ive 50 78 92 99 112 36
% 7% 9% 7% 8% 9% 5%
Total Investment 585 530 483 288 163 279 266 172 284 601 571 373 402
I. Thailand Investment Trends
Investment Levels Equal to Mid 90Investment Levels Equal to Mid 90’’ss
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 44
Source: CB Richard Ellis Research Source: CB Richard Ellis Research –– Quarter 2, 2007, 2007 Hemaraj EstimateQuarter 2, 2007, 2007 Hemaraj Estimate
Thailand Industrial PropertyThailand Industrial Property -- DemandDemand(1994 (1994 –– 2007)2007)
Thailand Industrial Property Market
5,585
8,049
8,549
3,501
2,865
675
893
1,509
2,2641,848
2,138
2,695
4,008
4,500
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F
Total (Rai)
1 1 RaiRai = 1,600 Sq.m.= 1,600 Sq.m.
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 55
0
50
100
150
200
250
300
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1H'07
Index
Source: Bank Of Thailand Source: Bank Of Thailand –– June 2007June 2007
Manufacturing Production Index : AUTOMOTIVE & PARTSManufacturing Production Index : AUTOMOTIVE & PARTS
2000 = 1002000 = 100
I. Thailand Investment Trends
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 66
16 1934
5475
101
123 129
171
232
328
382
218
0
60
120
180
240
300
360
420
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1H'07
Passenger Cars Parts of Passenger Car Motorcycle Parts Misc. Vehicles, Parts and AccessoriesTotal Vehicles, Parts and Accessories
Total Export Value : Automotive & PartsTotal Export Value : Automotive & Parts
Source: Thailand Customs Department Source: Thailand Customs Department –– Aug 2007Aug 2007
Baht : Billion
I. Thailand Investment Trends
Automotive & Parts as % of Total Export
1995 1.16%
2006 7.72%
1H’07 8.68%
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 77
ASIAN Vehicle Demand (Sales) 2010 Vs 2006ASIAN Vehicle Demand (Sales) 2010 Vs 2006
Source: Global Insight Automotive, April 2007Source: Global Insight Automotive, April 2007
( ' 000 units)
Country 2002 2006 2010 2017 Growth 2010 Vs 2006
Units %
JAPAN 5,792 5,739 5,921 5,994 182 3%
CHINA 3,386 7,317 11,402 16,042 4,085 56%
SOUTH KOREA 1,641 1,209 1,445 1,590 236 20%
INDIA 898 1,747 3,313 5,507 1,566 90%
AUSTRALIA 824 962 1,088 1,175 126 13%
TAIWAN 399 364 443 513 79 22%
Subtotal Non-ASEAN 12,941 17,338 23,612 30,821 6,274 36%
THAILAND 409 682 788 1,089 106 16%
MALAYSIA 441 489 624 855 135 28%
INDONESIA 318 319 583 1,012 264 83%
PHILIPPINES 86 99 170 309 71 72%
VIETNAM 29 39 61 140 22 56%
Subtotal ASEAN 5 1,283 1,628 2,226 3,405 598 37%
Total 14,223 18,966 25,838 34,226 6,872 36%
II. Thailand Position in Asian Automotive Industry
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 88
ASIAN Vehicle Production 2010 Vs 2006ASIAN Vehicle Production 2010 Vs 2006
Source: Global Insight Automotive, April 2007Source: Global Insight Automotive, April 2007
( ' 000 units)
Country 2002 2006 2010 2017 Grow th 2010 Vs 2006
Units %
JAPAN 10,257 11,484 11,570 11,438 86 1%
CHINA 3,307 7,268 11,823 16,848 4,555 63%
SOUTH KOREA 3,148 3,839 4,059 4,108 220 6%
INDIA 960 1,976 3,844 6,421 1,868 95%
AUSTRALIA 370 333 459 430 126 38%
TAIWAN 334 303 424 477 121 40%
Subtotal Non-ASEAN 18,376 25,203 32,179 39,722 6,976 28%
THAILAND 585 1,194 1,635 2,079 441 37%
MALAYSIA 462 503 655 909 152 30%
INDONESIA 299 302 611 1,000 309 102%
PHILIPPINES 81 66 101 169 35 53%
Subtotal ASEAN 4 1,426 2,065 3,002 4,157 937 45%
Total 19,803 27,268 35,181 43,879 7,913 29%
II. Thailand Position in Asian Automotive Industry
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 99
ASIAN Vehicle Net Export/(Import) 2006ASIAN Vehicle Net Export/(Import) 2006
Source: Global Insight Automotive, April 2007Source: Global Insight Automotive, April 2007
Country 2006
Demand Production
Net Export/
(Import)
JAPAN 5,739 11,484 5,745
CHINA 7,317 7,268 (49)
SOUTH KOREA 1,209 3,839 2,630
INDIA 1,747 1,976 229
AUSTRALIA 962 333 (629)
TAIWAN 364 303 (61)
Subtotal Non-ASEAN 17,338 25,203 7,865
THAILAND 682 1,194 512
MALAYSIA 489 503 14
INDONESIA 319 302 (17)
PHILIPPINES 99 66 (33)
Subtotal ASEAN 4 1,589 2,065 476
Total 18,927 27,268 8,341
II. Thailand Position in Asian Automotive Industry
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1010
Thailand Auto Market 1995 Thailand Auto Market 1995 -- 20122012
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Local Demand
Imports
Production
Exports
Vehicles (‘000 units)
Source: Global Insight Automotive, April 2007Source: Global Insight Automotive, April 2007
I. Thailand Investment Trends
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1111
III. The Investment Climate in Thailand
Economic Conditions Long Term
� Economic Growth Prospects High in Thailand
and the Region
� Per Capita Consumption of Autos Still Low
� Long Term Political Stability
Favorable Market Demand Long Term
� Encouraging Consumption in Most Markets
� Available Financing at Low Interest Rates
� Expanded Models in Competitive Environment
� Established Auto Industry and Export Volume for
OEM 1 Ton Pickup and Auto Parts
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1212
Government Policies Encouraging
Investment Incentives
� Right to Own Land
� BOI Tax Holidays and Duty Exemptions
� No Currency and Dividend Restrictions
Laws Regulations and Open Markets
� Open Market Programs and Non Competition
� Environmental and Safety Regulations
� Success of Various Trading Programs, ie. AFTA and
FTA’s with Australia, Japan, as well as U.S. China
and India in future
� New Promotion of Small “Eco”Car
III. The Investment Climate in Thailand
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1313
Infrastructure and Operating Costs Reasonable
� Land and Building Costs
� Utility Conditions and Differential Provision
� Access to Ports and Roadways
� Availability and Costs of Skilled Labor
� Auto Clustering and Supplier Industrial Estates
� In Line Sequence and Just In Time Delivery
� Logistics and Distribution for Local and
Export Markets
III. The Investment Climate in Thailand
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1414
� Long Term Strategic Location Placement
� OEMs are moving to High Volume Platforms
� Relocation of Japanese Platforms to ASEAN for
Lower Costs and access to Growth Markets
� Suppliers follow OEM and Customer Locations
� Suppliers choose Integrated Supply Networks
Including Clustering with Competition
� Specialized Component Manufacturing to
Maximize Volume in One Location
IV. The Decision for Thailand Automotive
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1515
� To Maximize Local Content and Value Add
Drives a Multitude of Supplier Expansion
� Thai Suppliers, Given Lower Volumes, Service
Multiple OEM’s and Export outside ASEAN
� Some Balance Recognizing Regional Goals for
Thailand with Production Competency Base
throughout ASEAN
� China Diversification
� Overall Risks in Balance
IV. The Decision for Thailand Automotive
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1616
� Suppliers Produce Both Locally and Export for Multiple
OEM’s Increasing Volumes
� 1 Ton Pickup exports to 130+ Markets Today
� Exports from Auto Suppliers are already well
established but Opportunity is to High Volume Global
Markets ie: Japan, Korea, U.S., Europe, China, and India
� FTA’s will broaden the Auto OEM and Auto Part Exports
� Eco Car could establish Entry Level Passenger Export
Volumes for Thailand
� Thailand ideally placed in High Growth Asia Market with
Lower Production Costs compared to Japan, Others.
V. Opportunities for Thailand to Attract Automotive OEM’s and Auto Suppliers
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1717
About HemarajAbout Hemaraj� Hemaraj Land And Development Public Company Limited is
Thailand’s leading developer of Industrial Estates, Utilities,
and Property Customer Solutions.
� Hemaraj has Assets of approximately Baht 13.1 billion or USD
385 million with an appropriate financial structure and a
global customer base.
� 6 Industrial Estates with a combined land area of 32,259 rai
(12,904 acres), 348 customers, including 118 automotive
companies, with estimate of USD 12 Billion of Investment.
� Thailand Industrial Land Sales Market Share #1 in 2006 and the first half of 2007 with 25 % and 37% market share, respectively*.
* Source : CB Richard Ellis
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1818
Ford & Mazda – Auto Alliance (Thailand)
• One Ton Pick-Up, Manufacturing Plant
• Ford Ranger
• Mazda Fighter
• Capacity of 155,000 units/year
• 75% Export to Europe, Australia and 130 countries
• 25% Domestic
• 650 Million USD of investment
• 50% US, 45% Mazda Japan, 5% Mazda Sales (Thailand)
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 1919
General Motors
• Production capacity of 160,000 vehicles per year
• Chevrolet Colorado 1 ton pickup for local and export
• Chevrolet Optra (Sedan), Aveo, Captiva
• Isuzu for export
• 100% USA Ownership
• 800 Million USD of investment
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2020
Cataler (Thailand) Co.,Ltd.
• Automotive Catalyst, Motorcycle Catalyst, Catalytic Slurry
• Ownership Cataler Japan
• Domestic to Toyota, Yamaha
• Auto : 65% Export to Cataler in Japan,
: 35% Domestic to Toyota Group
• Motorcycle: Export to France
: Domestic to Yamaha, Kawasaki, Thai Suzuki
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2121
GKN Driveline (Thailand) Ltd.
• Driveshafts
• Ownership 100% UK
• 50% Domestic to GM, Honda, Toyoda
• 50% Export to Proton- Malaysia, GKN - USA
VI. Automotive Export Examples
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Halla Climate Controls
• Radiator & Aircon System
• Ownership Visteon USA (82%) , Halla Korea (18%)
• 75% domestic to Ford & Mazda (AAT)(80%), GM and after market
• 25% export to Korea
VI. Automotive Export Examples
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JTEKT Automotive (Thailand) Co.,Ltd.
• Power Steering Pump Condition Equipment, Piping Gear
• Ownership 100% Japanese (JTEKT-Japan)
• 70% Domestic to Toyota, Mitsubishi
• Export to Japan
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2424
Li Tai Alloy Co., Ltd.
• Aluminium Alloy Wheel
• Ownership League Alloy Co., Ltd. 100% (Taiwan)
• Export - USA 80% Asia 5% Other 5%
• Domestic 10%
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2525
Nakagawa Sangyo (Thailand) Co., Ltd.
• Interior Parts for Automobile Exhaust Components for Automobile
• Ownership Nakagawa Sangyo Japan 100%
• Export Japan 30%
• Domestic 70%
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2626
Off Road Accessories Limited
• Four- Wheel Car Accessories
• Ownership: Australia 100%
• Export 100%
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2727
Toyoda Boshoku Filtration System (Thailand) Co.,Ltd.
• Oil Filter
• Ownership Toyota Boshoku Asia 100%
• Export 90% to U.S., Europe, and Asia
• Domestic 10%
VI. Automotive Export Examples
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Thai Kohwa Precision Co., Ltd.
• Precision for Automotive & Electronics
• Ownership Kohwa Precision Industry Co., Ltd. 100%
• Export 40% to Japan
• Domestic 60% JTEKT Automotive, Siam Chuyo, Thai Kayaba Industries
VI. Automotive Export Examples
““The World Class Developer in ThailandThe World Class Developer in Thailand”” 12 September 200712 September 2007 2929
Valeo Compressor Clutch (Thailand) Co., Ltd.
• Magnetic clutch for A/C
• Ownership Zexel Valeo Climate Control Corp. Japan (89.6%), ZVCT (6.2%), Siam Zexel (2.1%), Koyo Techno Japan (2.1%)
• 1 Million units sale (2003)
• 40% Export to Japan, Korea
VI. Automotive Export Examples