Construction machinery supplier TCJ Asia Pcl has partnered with Italian company OM to target the Thai forklift market.
OM has appointed TCJ as the sole distributor of its forklift and industrial vehicles in Thailand, Laos, Cambodia and Myanmar.
TCJ Asia managing director Songwoot Graipaspong says the company is diversifying its business. It has been importing and distributing tools for heavy machinery, cranes and manufacturing and distributing stainless steel pipes.
Graipaspong estimates the Thai forklift market to be worth at least THB4 billion (USD125 million) a year, with a growth rate of 10% annually.
 Songwoot Graipaspong |
"Thailand is [now] one of the South East Asian countries with very high potential in industrial development," he says.
He adds that his company is taking a "major step" in distributing forklifts.
"If we look closely at the industry's growth and the priority placed in the country's logistics system development, this business should enjoy a very high growth."
TCJ will initially market several OM models including XD25, XD30, XG25, XG30, XE20, TL20 and CTX20. The starting price for the forklifts is THB600,000 (USD18,754).
The importer anticipates selling 100 forklifts in its first year representing OM and expects business to grow 10% each year as a result of its direct marketing strategy.
It is exhibiting the OM forklifts at the Thailand International Logistics Fair 2007 in Bangkok International Trade and Exhibition Centre, from September 12 to 16.
TCJ Asia was established in 1980 and mainly distributes heavy construction machinery for the domestic and overseas markets.
It has a 51% stake in Toyo Millennium Co Ltd that manufactures and distributes stainless steel pipes. Its joint venture company with Furukawa Uni Corp of Japan, Unic Sales (Thailand) Co Ltd, imports and distributes UNIC-brand cranes. It also has majority ownership in the Big Crane and Equipment Rental Co Ltd in Bangkok, Thailand.
TCJ's total revenue for the six months ended June 30 was THB451.3 million (USD14.1 million). Its net profit was THB14.34 million (USD448,230).