SET-listed Delta Electronics Thailand, the maker and distributor of power management solutions and electronics components, plans to add new production lines this year at Bangpoo Industrial Estate, expecting to get more orders from Chinese customers.
Anusorn Muttaraid, executive director of Delta Thailand, said many customers want to move their manufacturing from China to Thailand after feeling the pinch from the US-Sino trade war.
The company's Samut Prakan plant is set to support new orders, Mr Anusorn said.
"The new production line will be completed in the next 3-4 months, but Delta plans to speed up operations to start in early 2019," he said. "The customers are aiming to diversify due to the myriad risks from the trade war, while many manufacturing plants are facing difficulties in exporting from China due to such high tariffs to the US."
Mr Anusorn said Delta plans to buy used factories and plots at Wellgrow Industrial Estate in Chachoengsao province.
This plan is to deal with the flagship Eastern Economic Corridor scheme. Chachoengsao is one of the host provinces of the corridor.
"The new location will serve demand for smart electronics in the near future from new investment flows into the corridor, while operations in Thailand remain safer than in China due to the trade war," Mr Anusorn said.
Last August, Delta reported that Delta Electronics International Singapore Pte Ltd (DEISG) made a conditional voluntary tender offer for all ordinary shares of Delta worth 88.6 billion baht.
The conditional voluntary tender offer is for Delta's ordinary shares, totalling 1.247 trillion shares, with the offering price at 71 baht per share.
Delta said the deal will strengthen DEISG's global manufacturing reach and further enhance sales support in Southeast Asia and related regions.
Mr Anusorn said Delta is in talks with DEISG about the acquisition, and both parties have agreed to complete transactions in the first quarter of 2019.
"The plan will not de-list Delta stock from the Stock Exchange of Thailand," he said.
Mr Anusorn said Taiwan-based Delta Electronics owns two companies and is interested in a business presence in Europe, where there is a lot of technology and innovation.
Having listed on the SET in 1995, Delta is an electronics manufacturing company in Thailand focused on the production of switching power supplies, power systems, automotive electronics and related products.
The company has sales offices in Southeast Asia, India, Australia and Europe, as well as manufacturing facilities in Thailand, India and Slovakia.
Mr Anusorn said Delta has no plans for mergers and acquisitions in 2019, as it has assets to cover all business units.