Siam Kubota keen on big-machinery boost

Siam Kubota keen on big-machinery boost

Farm truck maker Siam Kubota Corporation (SKC) is focusing on the construction sector, where it sees huge potential for residential development in Greater Bangkok in line with mass-transit plans.

Siam Kubota senior executive vice-president Opart Dhanvarjor (left) and Somboon Chintanaphol, vice-president for sales and service, stand in front of the company's excavators on display at Architect '15, a building and technology expo that runs until Sunday at Impact Muang Thong Thani.

Senior executive vice-president Opart Dhanvarjor said the property industry had become more interesting with the mass-transit system reaching out to Bangkok's outskirts.

"Once the government's massive investment in infrastructure kicks off, it will drive massive demand for construction machinery, particularly excavators," he said.

Mr Opart expects overall sales of mini excavators weighing less than eight tonnes will grow by 20% this year from 4,500 last year.

SKC has been importing mini excavators from Japan since 2008, selling 4,000. It has a market share of 80-85% for new mini excavators.

Mr Opart expects the company's sales of mini excavators to surge by 30% this year to exceed 2,000.

Established in 2010, SKC is a 60-40 joint venture between Japan's Kubota Corporation and Siam Cement Group.

The company operates factories at Pathum Thani's Nava Nakorn Industrial Park and Chon Buri's Amata Nakorn Industrial Estate, with annual production of 240,000 and 80,000 units, respectively.

The Nava Nakorn factory also produces diesel engines and power tillers. SKC also operates a nearby parts distribution centre it launched last year at a cost of 500 million baht.

Tractors are made at the Amata Nakorn facility.

SKC this year hopes to recoup its sales this year to 50 billion baht after missing its target last year with sales of 47 billion baht, slightly down by 6% from a year earlier.

Domestic sales make up 70% of its sales, with the rest from exports. Tractors contribute about 60% of its farm machinery.

The sales drop was attributed mainly to falling farm product prices and late payments to farmers under the rice pledging scheme.

However, SKC's market share rose to 75% last year from 70%.

Mr Opart said the farm machinery market was expected to see a single-digit rise this year from 60 billion baht last year.

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