Chinese construction machinery manufacturer LiuGong Machinery plans to build three new factories and three machine assembly facilities in Asia-Pacific, with Thailand among the potential countries to serve its business expansion.
The company has yet to select the countries for its new facilities, which are expected to start next year, said Xiang Dongsheng, deputy general manager of LiuGong Machinery Asia Pacific.
LiuGong is also considering the amount of money needed to support these projects, he said.
Many countries in Asean are targets for the company.
"LiuGong continues to grow in Thailand, Vietnam, Myanmar and the Philippines because the company has a range of products that can serve industry growth in the region," said Mr Dongsheng.
Dongsheng: Thailand has good potential
The Liuzhou-based company supplies various products to its customers, including excavators, rollers, bulldozers, motor graders, pavers, skid steer loaders, cranes and mining trucks.
LiuGong also sells sugar cane harvesters and tractors to the agricultural sector.
The heavy construction equipment market in Asia-Pacific is expected to reach US$96.7 billion in value between 2022 and 2030, the company said, citing findings from Market Research Future, a market analysis company.
He said LiuGong, which entered the Thai market last year, sees a positive business outlook for the country because demand from the agricultural and construction sectors can increase its sales.
The Thai government is carrying out many infrastructure development projects, which help the construction sector and promise good revenue for businesses supplying products to builders, said Mr Dongsheng.
Local steelmakers also earn revenue from the state projects. They have called on the Srettha Thavisin government to accelerate budget disbursement as it would fuel state infrastructure development projects, which require steel during the construction process.
Transport Minister Suriya Jungrung- reangkit earlier issued a directive to accelerate key railway projects in the country, causing the State Railway of Thailand to ask the cabinet to approve more than 50 billion baht in financing to build the double-track railway section from Khon Kaen to Nong Khai and Red Line electric train extensions.