Pratanwong Phornprapha, president of Siam Motors Industries, said that the move was to secure leership in integrated logistics service by expanding its business to tap growth in the logistics industry and market in Thailand and other Asean countries.

He said that the company and AutoLogic Co Ltd, an affiliate of JWD, have jointly established Siam JWD Logistics Co Ltd., with a registered capital of Bt 20 million and three shareholders – Siam Motors Industries Co Ltd (52.5 per cent), AutoLogic Co Ltd/JWD (42.5 per cent) and an individual investor (5 per cent).

The joint-venture firm is expected to begin commercial operation in January next year and earn revenue immediately. Its first year’s revenue from supply of services to two (phase I) of the approximately 70 plants of Siam Motors Group customers is forecast to reach Bt50 million. Revenue from non-Siam Motors Group customers is also projected to contribute significantly to the firm’s growth and improve the firm’s 2017 performances in terms of revenue and profitability.

THAI EXPORTS SHRINK AMID

LOW CRUDE. COMMODITY PRICES

Thai exports contracted 4.22 per cent year-on-year to US$17.78 billion in October of this year, while the 10-month figure shrank 1.02 per cent year-on-year to $178.25 billion, according to Thai National Shippers’ Council (TNSC)

This whole year’s exports are estimated to contract 0.8 per cent, or at best zero per cent, after estimated low commodity prices as a result of expected further drops in crude prices, the council said.

Although there was improvement of consumer and business confidence in main export destinations including the United States, the United Kingdom, Japan and China, oil-producing countries have not yet reached agreement on their crude production which could drag down crude prices, it said.

TNSC forecast Thai export growth in a range of 0-1 per cent in 2017. Its major risks extend from uncertainties in the global economy and trade, the US monetary policy, fluctuations in prices of gold and crude to more trade barriers.