Bangkok Cable (BCC), a wire and cable maker, plans to begin investment in a third production plant, located in Chachoengsao, expecting operations to begin in 2020.
Pongsapak Nakornsri, assistant vice-president at BCC, said the new facility will produce higher quality products such as instrumentation and control cables to serve massive demand in industrial sectors.
Mr Pongsapak refused to provide the investment value for BCC's third facility, saying only the plan is 30% complete.
BCC's first two facilities are in Samut Prakan and Chachoengsao on 36 and 215 rai, respectively.
"The new plant aims to develop the quality of wires and cables to deal with difficulties companies face when using products from new market entrants," he said. "Most of these products are imported from Europe, which are costly and have much longer lead times, creating an opportunity for BCC to capture value in this market."
Despite the country's economic slowdown, Mr Pongsapak said BCC's decision to expand is based on the wire and cable market maintaining strong growth in 2020.
"We have seen growing demand in infrastructure projects, supported by state policies and conglomerates that will fuel the need for high-quality electrical cables in the power sector," he said. "Higher quality cables have advantages over ordinary products in a commodities market and create barriers for new entrants."
BCC targets a 10% increase in core revenue through deliveries in 2020, down from 15% growth because of the strong baht hurting exports.
Its subsidiary Bangkok Solar Power carries out solar panel installations and is seeking investment opportunities worldwide to expand power generation and transmission portfolios.
On Nov 4, BCC signed a pact with Cambodia's Yong Sheng Trading, a subsidiary of Royal Group, to form a partnership in the wire and cable market in Cambodia.
"Cambodia has fast-growing power demand and BCC believes this initial step can launch products in that country, with an expectation for future investments," said Mr Pongsapak.
