British scooter maker Scomadi Worldwide Ltd has forged a joint venture with its Thai distributor to operate an assembly plant in Samut Prakan.
Yesterday, the company and its Thai partner Scomadi Thailand announced the formation of the joint-venture company Marin Engineering Co, which will be in charge of assembling scooters in Thailand.
Scomadi Thailand's chief executive Pimol Srivikorn and his sister Taya Teepsuwan hold 80% of Marin Engineering Co, with the Lancaster-based firm owning the remaining 20%.
According to Mr Pimol, the new joint venture firm will invest 300 million baht in the new factory in Thailand on Bang Na-Trat Km 36, making 20,000 scooters a year.
Production is scheduled to begin in April.
"The Samut Prakan plant will be the main production hub for Scomadi worldwide, replacing former original-equipment manufacturer Hanway Motor in Changzhou, China," said Mr Pimol.
Scomadi Worldwide's director Frank Sanderson said the company had terminated a manufacturing contract with Hanway after the Chinese partner violated Scomadi's intellectual property rights by making scooters under the Royalloy brand, which look almost identical to Scomadi designs.
The Chinese company exports its scooters to 20 countries, including Thailand where Scomadi has authorised distributors.
"Scomadi is also filing a lawsuit against Hanway in Thailand," he said.
As a result, Scomadi sold only 8,900 units worldwide last year.
Scomadi scooters have been available in the global market since 2015 with three engine sizes -- 50cc, 125cc and 200 cc. About 7,000 scooters were sold in 2015.
The 200cc scooter will be assembled in Thailand, according to Mr Sanderson.
The British company has set up a new company named Scomadi Asia Pacific Co and has appointed Mr Pimol to be in charge of the distribution in the region.
Mr Pimol plans to enter Japan, Indonesia, the Philippines and Vietnam.
Last year, its sales in Thailand totalled 1,900 scooters, well below its expectation of 3,000, but higher than the 800 scooters sold in 2015.