Supunnabul Suwannakij
\nDow Jones
\nBangkok<\/p>\n
Japan's Denso Corp. plans to invest close to US$500 million in
\nSoutheast Asia from this year through 2010, with Thailand as the
\nmain investment focus, in order to take advantage of the region's
\nfast-growing car market.<\/p>\n
The leading automotive electronic parts maker, and an
\naffiliate of Toyota Motor Corp., has set an initial investment
\nbudget of around $280 million for 2003 to 2005, to be used to set
\nup new production facilities and increase existing production
\ncapacity, said Chishu Murodono, managing director for Denso
\nInternational Asia Pte. Ltd.<\/p>\n
\"In 2005-2010, we will invest another $200 million in the
\nregion, half of which will be invested in Thailand,\" Murodono
\ntold Dow Jones Newswires in an interview. Other countries Denso
\nmay invest that money in include Indonesia and Malaysia.<\/p>\n
From 2000 to 2002, Denso invested $120 million in the region.
\nOf that amount, 40 percent was in Thailand and the rest mainly in
\nIndonesia and Malaysia. At present, the company has four
\nproduction facilities in Thailand.<\/p>\n
Denso has raised its projection for vehicle production in
\nSoutheast Asia to 2.5 million units in 2005, from 1.4 million
\nunits in 2002, Murodono said.<\/p>\n
The Thai vehicle market is expected to reach 900,000 units in
\n2005, he added.<\/p>\n
For the January-September period, new vehicle sales in
\nThailand rose 32 percent on year to 379,252 units. Total vehicle
\nsales in Thailand this year should reach 500,000 units or more,
\naccording to the Federation of Thai Industries.<\/p>\n
Denson's investment plan will fuel its revenue growth in the
\nregion. Murodono said he expects the company to enjoy double-
\ndigit annual growth in Southeast Asia sales up to 2005, and 50
\npercent annual growth after 2005, contributing a significant
\nshare to total sales around $20 billion in 2002.<\/p>\n
\"We target sales from Southeast Asia to reach $1 billion in
\n2005, almost doubling from $530 million in 2002,\" Murodono said.<\/p>\n
Thailand is a key player in the region, with expected sales of
\n$450 million in 2005, from $200 million in 2002, he added.<\/p>\n
Thailand was chosen as the primary focus for Denso's
\ninvestment in the region due to its booming car market and its
\npotential as the 'Detroit of Asia,' Murodono noted.<\/p>\n
Major Japanese car makers such as Toyota Motor and Isuzu
\nMotors Ltd., and U.S. auto giant Ford Motor Co. (F) have
\nannounced plans to increase their investment in Thailand, as the
\ncountry's robust economic growth fuels more automobile sales.
\nThe new Thai production plants and the expansion of its existing
\nfacilities will mainly cater to growing domestic demand and
\nsupply the car manufacturing plants located in the country,
\nMurodono said.<\/p>",
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