China Machine (Thailand) Co, a dealer for Xuzhou Construction Machinery Group (XCMG), expects its total revenue to grow to 4 billion baht in 2022, despite the possible impact of the Russia-Ukraine war on the construction sector.
The company also plans to launch electric vehicles (EVs) equipped with machinery for construction work this year as the EV trend in Thailand is growing.
China Machine is positive about its business growth, believing it will be driven by the government's projects, including road construction and repair and infrastructure development under the Eastern Economic Corridor scheme, said its chief executive Chen Bing.
"The construction sector in Thailand has tended to grow despite the ongoing Covid-19 outbreak," he said.
However, the Federation of Thai Industries earlier expressed a worry that infrastructure development projects in many countries may be affected by the economic impact of the war in Europe because Russia is a major steel producer and exporter. Prices of exported steel are expected to rise.
According to China Machine, the Thai construction sector grew by 20% in 2021, thanks to government infrastructure development projects.
The company, which sells Chinese-made products including excavators, cranes, truck-mounted concrete pumps and concrete mixers, sold 1,000 units last year, with total revenue of 1.8 billion baht.
China Machine expects its sales volume to reach 2,000 units this year, allowing it to command the second-largest market share in Thailand, after Sany Thaiyont Co, another local distributor of Chinese-made excavators.
The company plans to allocate an investment budget of more than 100 million baht to various business development projects, including branching out of product showrooms.
Last year, the total sales volume of XCMG stood at 100,000 units, mostly in China. It aims to expand its market in Asean.
XCMG is conducting a feasibility study to build machine and vehicle assembly facilities in Asian countries, including Thailand and Indonesia.
In Thailand, the state-run Electricity Generating Authority of Thailand is its main customer for EVs equipped with machinery for use at a coal mine in Lampang's Mae Mo district.
"EV sales in the heavy machinery segment will take three years to grow because their prices are 1-2 times higher than oil-powered vehicles," said Mr Chen. "Only the government and large companies can buy the electric versions."
