Issue 32

With the advent of the ASEAN Economic Community (AEC) at the end of 2015, Thailand is perfectly placed to benefit from its competitive advantage in the steel industry.

Thailand’s stainless steel industry has a promising future not just domestically, but also to penetrate foreign markets in Asia and the US, says one of the country’s major steel manufacturers.

“Thailand is the only country in the region that has large-scale stainless steel kitchenware factories, which offers many opportunities for business growth due to less competition,” explains Aroon Ruengcharungpong, Chief Executive Officer of Thai Stainless Steel, which produces the Seagull brand. He also believes that Thailand is blessed with highly skilled labour force, which helps with product development and customer services.

According to Ministry of Commerce figures, the amount of steel products exported to Asia alone from January to May this year increased from 17.9 billion baht in 2014 to 20.3 billion baht.

“Seagull was formed in 1994, with the aim to become a market leader in stainless steel kitchenware for both local and foreign markets under the slogan ‘Buy Quality, Buy Seagull’,” explains Ruengcharungpong. “After a while the trend shifted from stainless steel to non-stick kitchenware.”

The company, which was awarded the 1997 Prime Minister’s Export Award (now the Prime Minister’s Business Enterprise Award) for Distinctive Development & Marketing of Thai owned-Design for Exports from the Ministry of Commerce, now exports to markets in Asia and the US. “Our brand products are mainly exported within Asia,” says Ruengcharungpong. “In addition, we also provide an Original Equipment Manufacturer (OEM) service, with the US being the major market. At the moment, our ratio of local to export sales is 3:1.”

Ruengcharungpong believes a major factor behind the company’s growth has been securing effective business partners and distributors. “Depending on the size of the markets, in some countries we have more than one partners and/or distributors. For example, we have two business partners in Myanmar since it is a large country,” he says.

Thai Stainless Steel implements quality control procedures to ensure that products and services meet both national and international requirements.

“Some countries such as Japan have certain rules and regulations and our products have always met their requirements,” explains Ruengcharungpong, adding that market trends play a major role in product development. “It is an on-going process but looking into consumer demand can tell us what kind of products we should focus on and further develop. It’s not just about the quality but product design as well.”

The company plans to have more business partners and distributors in 2015. “We see potential in Vietnam and we are looking to have more business connections in the country,” he says. “The company is also planning to expand into the Middle East and Europe.”

For more information, visit www.seagull-brand.com

Words by: Manisa Phromsiripranee