The SET-listed contractor Sino-Thai Engineering & Construction Plc (STEC) is looking to team up with Japanese partners to bid for construction projects in Myanmar, while speeding up expansion of power plant and factory construction at home.
Woraphant Chontong, a senior executive vice-president in STEC's financial and administration division, said several Japanese investors are interested in investing in Myanmar including the Mitsui Group and Marubeni Corporation. This has increased STEC's interest in securing construction projects in Myanmar, especially factories and power plants he said. Though the company and Japanese investors have yet to forge any official partnerships, it has strong connections with them, he said.
The company also claims to have created close links with the German conglomerate Siemens and an unnamed French power plant investor which are also studying investment opportunities in Myanmar.
In Thailand, the listed property firm is looking to increase its share of private sector contracts such as the construction of manufacturing and power plant to 40% this year from 30-35%, as private investment is increasing and profits are higher than government contracts.
"We'll maintain our policy of refusing contracts in the housing sector due to payment delays. Worse still, some projects are facing a lack of liquidity and are unable to pay for the construction," Mr Woraphant said, adding that housing sector profits are too low and not worth the risk.
To cope with ongoing labour problems, the company will need to depend more on construction technology and foreign labour. Currently STEC has 4,000 foreign workers from its quota of 7,000, Mr Woraphant said.
Given the prospect that economic growth in Laos and Myanmar may lure foreign labour to return home, Mr Woraphant insisted Thailand's wages remain attractive and four times higher than in those countries.
But he admitted wages in those countries will possibly be on a par with those in Thailand in the next seven years as growth in these countries gathers momentum.
Therefore, contractors will need to now look at introducing technology to replace labour, Mr Woraphant said.
The company now has a backlog of 70 billion baht, to be realised within three years. Jobs in hand include four mass transit projects worth 40 billion baht.
There is also construction of the new parliament building worth 10 billion baht and two power plants worth 16 billion baht. It will also bid for new jobs worth 10 billion baht in the second half.
Shares of STEC closed yesterday on the SET at 20.70 baht, up 20 satang, in trade worth 218 million baht.