Siam-Hitachi Elevator Co, a Thai-Japanese joint venture making elevators, escalators and moving sidewalks, is raising elevator production at its Thai factory to serve growing demand from domestic and export markets.
Dhanet Yongratanamongkol, executive vice-president, said the company will spend 200-300 million baht to increase production of elevators at the plant in Chon Buri's Amata Nakorn Industrial Estate from 3,500 units a year to 5,000 by 2020.
The company spent 800 million baht last year to raise production to 3,500 elevators in 2015 from 2,000 previously.
Thailand is Hitachi's production hub outside Japan. The Thai operation handles exports to all Asian countries except China and Japan.
Founded in 1992 by Siam Motors Co and owned by the Phornprapha family and Japan's Hitachi Group, with the Japanese firm owning 60%, Siam-Hitachi assembles, distributes and installs Hitachi elevators and escalators.
The company achieved 15% growth in revenue to 2.9 billion baht in the last fiscal year ending March, with some 60% of revenue coming from exports and the rest from the domestic market. Mr Dhanet said the company has set a revenue goal of 3 billion baht for the fiscal year that began in April.
Siam-Hitachi forecasts the domestic market for elevators and escalators to rise by 10-15% in 2013 from last year's 10 billion baht.
The company has 13 service branches nationwide, five of which are in Bangkok.
Thailand's elevator market is expected to increase by 5% to 12 billion baht or 5,500 units this year.
Hitachi controls 16% of the Thai elevator market, second to Mitsubishi. The former aims to raise its market share to 20% by 2017, noting that Hitachi products now span all segments from the low- to high-end property markets.
Mr Dhanet plans to open two more locations in Surat Thani and Udon Thani by 2017 worth a combined 6-8 million baht.
Siam-Hitachi formed joint ventures with Hitachi Group in Myanmar and Cambodia, whose annual market value is 200 million and 100 million baht, respectively. It plans to set up a service branch in Laos.