TICON Group Confirms 2014 Growth Target

          Continuous growth of factory and warehouse for lease business foreseen in 2nd half due to regain of foreign investors’ confidence in Thailand
          Expansion of space for rent moved ahead as planned

          TICON Group comprising TICON Industrial Connection Plc. (TICON) and TICON Logistics Park Co., Ltd. (TPARK), the leading developer of factories and warehouses for lease in Thailand, announced key performance for the first half of 2014. TICON Group aggressively moved ahead with the expansion of Ready Built Factories and Warehouses space for rent and expects to spend Baht 8 billion within end of 2014 as planned. Under 2014 key strategy focusing on “availabilities”, TPARK has also moved ahead with its plan to expand warehouse for rent business to all regions of Thailand with an additional investment budget of Baht 3.6 billion within 3-5 years. The Group foresees significantly higher growth of rental factory and warehouse business in the 2nd half due to regained investors’ confidence in Thailand and recovery of economic situation.
          Mr. Virapan Pulges, Managing Director of TICON discloses, “During the first half of 2014, TICON Group moved forward with its investment plan to expand the Ready Built Factories and Warehouses space to prepare for increasing demand resulting from the improved political situation and the upcoming AEC which will be fully implemented in 2015. Construction of TICON’s Ready Built Factories in the first half 2014 totals 100,000 sq m while construction of TPARK’s Ready Built Warehouses totals 250,000 – 300,000 sq m. Target of TPARK to increase the leased warehouses space by 250,000 sq m at the end of 2014 remains unchanged while TICON adjusted its target for increased leased factories space to 70,000 sq m, down from 100,000 sq m announced early this year.
          Net profit as of 30 June 2014 totals Baht 149 million, decreased by 64% compared to the same period of 2013. Majority of revenue comes from sales of properties totals Baht 541 million. Revenue from the rental and service income totals Baht 428 million.
          TICON Group’s performance during the first half was affected by the delay in investment from some customers due to the political instability. However, after May onward both local and foreign investors have regained confidence in Thailand and started to go ahead with their investment plan, thus refreshing demands for factories and warehouses for rent. Majority of customers are from automotive and parts, electronic and electrical industries, consumer products, modern trade and logistics businesses. Presently, TICON’s customers are from Japan (64%), Europe (17%) and others (19%) while TPARK’s customers are Japan (39%), Europe (33%) and others (28%).
          Concerning the business direction in the 2nd half of 2014, Mr. Virapan said, “TICON Group will continue to expand its business as planned. On the rental factories business, TICON will launch the first phase of the new project in ASIA Industrial Estate (Suvarnabhumi) in this September. This new project is the nearest to Bangkok. The total land area is 107 rai which will be developed to the high quality Ready Built Factories with the size ranges from 550 - 4,200 sq m. When the project is fully developed, it will add 41 units of rental factories. In addition, TICON will develop more projects in its ready-for-use land acquired since last year. Lately the company also bought additional land of 290 rai in Pinthong Industrial estate in Chonburi province.”
          Mr. Patan Somburanasin, Managing Director of TPARK reveals, “In the first half of 2014 TPARK’s warehouses for rent business continued to grow at a satisfactory level due to the increasing purchasing power in major cities in the regions of the country. More demands are also foreseen from the expansion of key industrial and business sectors such as wholesale and retail business, consumer products, modern trade, logistics providers and construction materials following the AEC implementation in 2015.
Under the key strategy focusing on “Availabilities”, TPARK has moved ahead with its plan to expand rental warehouses business to all regions of Thailand. The company has set up an investment budget of Baht 3.6 million under 3-5 years to develop high quality Ready Built Warehouses on the land acquired in Khon Kaen (173 rai), Surat Thani (70 rai) and Lamphun (162 rai). When completed, the three projects will add 300,000 sq m of warehouses space for rent which will be available starting from the 2nd quarter of 2015.
          For the 2nd half of this year, TPARK will continue to increase warehouses space for rent in the existing projects in especially Bangplee, Bangna and Wangnoi areas where increasing demand is expected from the expansion of industrial sector, consumer products and logistics businesses. The company is confident to achieve the target to increase warehouses space for rent. At the same time negotiation to expand business overseas is still going on.”
          “Along with business expansion, TPARK also focuses on product development of higher specifications and quality to meet specific customers’ requirements especially in the Built to Suit (BTS) warehouse category. Apart from strong financial back-up and numerous locations in key strategic areas, TPARK’s superior competitive advantage is its in-house professional development team. Our in-house team members have long-time experiences working with TICON group and thus have gained expertise in developing the warehouses according to specifications required by each customer. The in-house team also enables us to effectively provide consultation to customers and construct BTS warehouses within the agreed period of time, not having to rely on outside contractor. TPARK’s BTS are varied to suit customers’ different need such as Cross-Dock, designed specifically for modern trade, cold storage and warehouse for dangerous goods. BTS warehouses space has continuously increased from 10,706 sq m in 2008 to 267,000 sq m at present.” added Patan.
          “TICON Group foresees significant improvement in our operation in the 2nd half of 2014 due to improved political situation and clearer economic and investment policy. From participation in various road shows organized by The Stock Exchange of Thailand and financial institutes, foreign investors still have strong confidence in Thailand. Particularly Japanese investors see Thailand as manufacturing base and linkage to other countries in ASEAN region. In July this year, TICON signed a memorandum of understanding (MOU) with Yokohama Industrial Development Corporation (IDEC) to support Japanese SMEs in expanding their business to Thailand. Under the MOU, TICON will provide information on factory rental and how to set up manufacturing facilities in Thailand via a series of seminars to be organized by IDEC for SMEs in Japan, followed by site visits of Factories-for-Rent projects in Thailand. The cooperation is aimed at helping Japanese SME manufacturers in the automotive, electronic appliances and plastics industries who are interested in investing in Thailand,” concluded Mr. Virapan.

Photo Release: Amway partners TPARK to open new distribution center at TPARK Bangplee 1

Mr. Kittawat Ritteerawee (left), Managing Director of Amway (Thailand) Limited, recently joined hand with Mr. Virapan Pulges (right), Chief Executive Officer of TICON Industrial Connection Public Company Limited (TICON), the parent company of TPARK, to open its new distribution center at TPARK Bangplee 1 developed by TICON Logistics Park Company Limited (TPARK). The new facility covers a space of 10,280 square meters for storing and distributing to Amway Business Owners and members, and timely

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TICON Group Confirms 2014 Growth Target

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Photo Release: Amway partners TPARK to open new distribution center at TPARK Bangplee 1