The trade war between the US and China has been a concern for many companies since last year, and it nudged Shenzhen Besser Display Equipment, a manufacturer of liquid-crystal display (LCD) products, to invest in a new facility in Thailand, marking its first overseas footprint.
The trade reprisals have led Chinese firms to move their operations to other countries to avoid US tariffs and maintain their competitiveness.
Besser set up a local company, Besser Display Technology Thailand, in 2018 to operate all its business units here: sales, distribution and manufacturing.
Besser has a head office at Gemopolis Industrial Estate in Bangkok and an office branch in Nonthaburi.
To run the manufacturing facility, Besser has set aside 100 million baht for new operations in Chachoengsao province, said managing director Thanawut Fangjirasakun.
"The facility will produce LCD equipment and run an R&D unit, scheduled to start operating by 2022," he said.
Mr Thanawut said the Thai government offers attractive investment incentives for local and foreign investors, which is why Besser decided to invest here.
The new plant in Chachoengsao is positioned to be a production hub for both domestic sales and exports to the US, Europe, South Asia and Southeast Asia in the near future.
"Besser will relocate its LCD supply chain from China to Thailand," he said.
Mr Thanawut is presenting Besser's LCD to be sold in Thai market.
Mr Thanawut said the manufacturing facility in Shenzhen produces roughly 36,000 LCD units a year. Besser aims to expand capacity in the near future as it projects LCD demand will grow based on the Chinese population.
It aims to enter the northern region of China.
In Thailand, Besser plans to produce 72,000 LCD units a year, with 60% of output for export.
"The local market will take up 40% of output," said Mr Thanawut.
He said Thailand has lots of potential and is a dynamic market in Southeast Asia.
The country's first strength is location, which is ideal for an LCD production hub. The second is local workers who are very skilful, with experience in making quality products in the electronics sector for four decades.
Thailand's labour costs are gradually climbing, but Besser is not worried as the company considers them reasonable and feels it can rely on good productivity and quality from Thais.
Besser forecasts the smart display global market, including LCDs, reaching US$26.9 billion (859 billion baht) by 2020, with one-third coming from Asia-Pacific.
The US and Europe are the two major smart display markets in the world.
Besser generates sales of roughly 1 billion baht a year in China. The parent firm is confident it can compete with rivals in the Thai market.
The company has imported multiple smart display solutions for market tests, such as smart interactive blackboards for classrooms and highly readable visuals with 4K full high-definition resolution LCD screens.
"In 2019 Besser expects sales in Thailand to reach 30 million baht. The company aims for 50 million baht by 2020 because we plan to increase distribution channels through modern trade and department stores," said Mr Thanawut.
"Besser can develop and deliver products to fit the varying needs of Thai consumers."
He said Besser is seeking new partners in Thailand in order to form a joint venture to enter other Southeast Asia countries.