SET-listed Bangkok Sheet Metal Co (BM), a local sheet mould and sheet metal producer, plans to sell a stake to a Japanese electronics giant in search of further business expansion.
Chief executive Tanin Sajjaboribun said the Japanese company is interested in acquiring a 20% share of BM to take advantage of its expertise, after seeing strong potential for its sheet metal business in Thailand.
He declined to provide the Japanese company's name.
"The Japanese company wanted to expand its business in Thailand through a subsidiary, but it is a very slow process, which is why it needs to find a Thai partner such as BM," said Mr Tanin.
He said there are more Japanese investors interested in expanding their businesses into Thailand and using it as a production base to expand in Asean.
Mr Tanin said the plan to partner with the Japanese company would bring benefits to BM, such as high-technology transfers as well as new customer base in Japan.
BM was established in 1995 as a producer of metal trucking and white conduits, communication racks, cabinets and enclosures, electrical switchboards and lighting fixtures.
It also produces fabrics and metal work, mould and dye-making and related machines, tools and equipment.
Mr Tanin said he expects BM's revenue next year to grow 5-20%, thanks to the massive state investment in infrastructure projects, which will raise demand for the company's products.
He added the company aims to benefit from major expansion and construction of railway projects.
In the first nine months of this year, BM posted a total revenue of 609 million baht. BM's revenue in 2015 was 806 million baht.
Net profit in the first nine months was 42.7 million baht, down from 46.9 million year on year. Net profit in the third quarter alone was 18.9 million baht, down from 32.7 million in the same period last year.
Next year, BM plans to expand into producing agricultural machinery such as sugar cane harvesting machines and rice harvesting machines, he said.
"Since metal sheet is used in harvesting machines, we plan to produce them for Siam Kubota Corporation Ltd as a made-to-order products to be sold under the brand of Kubota," said Mr Tanin.
BM also plans to expand its machinery production and exports to neighbouring countries, which are all agriculture-based economies.
BM shares closed Friday on the SET at 3.50 baht, down two satang, in trade worth 3.41 million baht.