In an era where environmental considerations are some of the highest priorities in doing business, one company is facing the challenge of transforming its business from zinc mining.

With the Thai Ministry of Energy’s target capacity for renewable energy production to increase from 7.3MW in 2014 to 19.6MW in 2036, many companies are opting to source more sustainable types of alternative energy for their operations.

For over thirty years, Padaeng Industry (PDI) has mined natural resources, such as zinc ore in Mae Sot District, Tak province. Now, the company is ceasing its zinc mining operations, and turning instead to managing coffee and timber wood plantations as well as producing alternative energy from biomass using innovative technology.

“We want to work on thinking green,” says Francis Vanbellen, managing director of PDI. “An example is the Mae Sot mine where we have already reforested 3,000 trees around the mine.”

The company is facing a huge transition after making the decision to close down the mines and restructure its operations to move towards the green sector. New projects include 48MW solar farms in Tak province, a 54MW wind-energy power plant in Nakhon Ratchasima province, and an 8MW biomass power plant in Surat Thani province.

Vanbellen says that PDI has an extremely strong technology team that looks into the development of the power plants. PDI sources technology from overseas and combines them with existing knowledge in Thailand.

“The only way to create the future is to use innovative technology, not just copy and paste,” says Vanbellen. “For example, if we use cheap technology for the biomass plants, the welding would not be done properly. We are investing 20 million baht more per megawatt so that the energy produced from the project can increase by 25%.”

Other green initiatives include coffee and cocoa plantations. “We’re helping farmers to grow cocoa beans in Thailand,” says Vanbellen. “Only 1% of the world’s cocoa beans are grown in Southeast Asia – there is potential to raise that number to 10%.”

Looking forward to the opening of the AEC, Vanbellen is optimistic that Thailand is in a good position in terms of logistics and labour. “Thailand is perfect for doing business,” he says. “We have skilled people and the country is centrally located between China and India. It is also a good location between Cambodia and Myanmar, both growing markets.”

Vanbellen is also confident about his company’s transition towards the green economy.

“In five years from now, PDI will have a market capitalisation five times [greater than] today,” he says. “We want to think globally and act locally and I believe we will be a very diverse company.”

For more information, visit www.padaeng.com

Words by Pimsirinuch Borsub

Thailand is not just a manufacturing hub but a world-class innovation hub for air conditioning units.

Technology development and innovation are as vital as good production to make your product stand out in the world market.

Based on export value, Thailand’s leading electrical appliances were air conditioners and refrigerators. In 2014, exports of the former accounted for nearly 17% of total electrical appliance exports, and the latter 6%, according to the Thailand Board of Investment (BOI).

“To build a strong business, we need to have our own technology, manufacturing and branding,” says Thunyawat Chittipalungsri, Assistant Managing Director of Saijo Denki, one of the leading Thai air conditioner manufacturers. “We try to communicate to the world that Thailand could be an innovation hub.”

Saijo Denki was founded in 1987. From its start as an original equipment manufacturer (OEM), the company has turned itself into a leading air-conditioner brand. “We position ourselves as an innovative and professional business,” says Chittipalungsri. “We were also the first Thai brand to export air conditioners to Japan.”

The company has been praised in Japan’s Nikkei for its innovative app that can connect smart phones to air conditioners. The Intelligent Inverter links the air conditioner with a customer’s smart phone under the concept of the Internet of Things (IoT). It can set the temperature to an energy saving mode, diagnose any broken part, estimate electricity bills and even warn when the unit should be cleaned.

“They [customers] appreciate the innovative and unique functions. Saijo Denki was the first company to develop such a system. It meets customer’s needs. Sales of inverter models have grown by more than 300% this year,” says Chittipalungsri. “Our Japanese partner told us that we have continuously developed our technology till we have our own know-how. How we work is like the Japanese norm. They value how we work.”

The company also focuses on energy-saving innovations. “Saijo Denki is the top brand air conditioner according to Singapore’s green economy measure,” adds Chittipalungsri.

All this innovation not only contributes to Saijo Denki’s success in the marketplace, but also improves the image of Thailand as a manufacturing nation.

“International customers in particular those from ASEAN, India and the Middle East, feel more confident with Made in Thailand,” says Chittipalungsri. “In these countries, it means a premium product.”

For more information, please visit www.saijo-denki.co.th

Words by Natthinee Ratanaprasidhi

November marks an important month in the long history in relations between Thailand and Belgium with the Thai-Belgian Friendship project.

Perhaps the most lasting symbol of Thai-Belgian relations is the Belgian Thai Friendship Bridge, a partnership between the Belgian Ministry of Public Works and the Bangkok Metropolitan Administration. The bridge was built in 1988 in less than 24 hours and was the first fly-over in Bangkok, according to Belgian ambassador Marc Michielsen.

However, Thai-Belgian relations are steeped in history – almost 150 years of it. The first bilateral trade treaty was signed in 1868. Gustave Rolin-Jaequemyns, a Belgian lawyer, diplomat and general adviser to HM King Rama V between 1892 and 1901 was bestowed with the title of Chao Phya Abhai Raja, the highest distinction ever granted to a foreigner.

Count Gerald van der Straten Ponthoz, a distant relative of Rolin-Jaequemyns, is the Chairman of the Chao Phya Abhai Raja Siammanukulkij Foundation established in his ancestor’s honour.

In addition to preserving the memory of Rolin-Jaequemyns, the organisation carries out many projects to benefit disadvantaged children, and to provide them with an income, such as the construction of the state-of-the-art Chiang Rai Hill stadium, which van der Straten Ponthoz believes is one of the best private football stadia in the world.

In November, the foundation will instigate the Thai-Belgian Friendship project. Van der Straten Ponthoz believes it is a natural extension of the cordial relations between the two countries.

“You can say we [Thailand and Belgian] have been friends forever,” he says. “There is also a genuine friendship between the Thai and Belgian royal families.”

The Belgian Thai Friendship Bridge was inaugurated in the presence of HRH Princess Maha Chakri Sirindhorn, and when it was modernised in 2013, Prince Philippe and Princess Mathilde of Belgian attended.

“We do this project because of that friendship,” says Van der Straten Ponthoz.

The Thai-Belgian Friendship project will involve a series of events that are open to the public. The Thai-Belgian Bridge will be decorated from October 18 to November 30, and a sky strain given a Thai-Belgium wrap throughout November. There will also be a photographic exhibition of royal visits from November 1 to 8 and a Gallothai Thai-Belgian (Chocolate) Bridge Exhibition from November 5 to 8, both at Siam Paragon.

The event will also focus on the economic ties between the two countries, with an Economic Forum at ABAC (Assumption) University, Suvarnabhumi Campus, introduced by Dr. Kirida Bhaopichitr, senior economist at The World Bank on November 4.

“Exports from Belgium to Thailand increased in 2013 by 5.7%,” says Belgian ambassador Marc Michielsen in an interview with local media. “These are mainly chemical products, precious stones including diamonds, metals, machinery and equipment and plastics. Exports from Thailand to Belgium mainly consist of machinery and equipment, precious stones, metals, plastics and transport materials.”

More exclusive events, such as a photographic exhibition cocktail party, in the presence of HRH Princess Maha Chakri Sirindhorn at Siam Paragon on November 1 and a commemorative brooch charity gala dinner at the Plaza Athenee on November 3 are designed to raise money to help support the Thai Border Police build schools in remote areas of Thailand. The project concludes with a Thailand Elite Royal Portraits Cocktail Party at the Plaza Athenee on November 9.

For van der Straten Ponthoz, despite the importance of the country’s economic ties, it is the educational benefits of the project that he feels are more important. “The economic forum is interesting for the business community but the students are the future,” he says.

Words by: Mark Bibby Jackson

For more information on the Thai-Belgian Friendship project, visit: facebook.com/thaibelgianfriendship2015

Issue 37

 

 

Investing in new technology is the way forward for Thai industries as they look to expand into international markets.

According to the Thailand Board of Investment (BOI), Thailand's industrial GDP has showed an improvement compared to Q2 2014, with the manufacture of computers and electronics doing particularly well. As for the automotive industry, production for 2015 is expected to be 50-55% up for the domestic market and 45-50% for exports compared to 2014.

The boost to the automotive industry is having an impact beyond those companies specialising in the manufacture of automobiles and autoparts. Established in 2003, AIB Engineering is one such company.

“We saw how important blasting machinery would be in polishing and brushing stainless steel in automotive applications,” says Tanuch Praserttirachai, managing director of AIB. “At that time [2003], we wanted to create a blasting machine that was produced by Thais for Thais. It should be practical, durable, and competitive and meet the needs of those who use it.

Read more ...