The cooperation agreement came after Toll took over Singapore-based SembCorp Logistics Co, which had earlier invested in KPN-ST Logistics Co Ltd.

The company is 54-per-cent owned by KPN while the Singaporean side holds 46 per cent. However, Toll Logistics of Australia took over SembCorp three months ago.

Thus, the foreign shareholding in KPN-ST Logistics changed from Singaporeans to Australians.

Kris Narongdej, chief executive officer of KPN Group, said he met with executives from Toll Logistics earlier this month and was briefed about Toll Logistics' investment expansion plans in Thailand.

The likelihood is that the company would expand its investment via its Thai subsidiary, KPN-ST Logistics. Kris said he thought the company's logistics business should triple in the next couple of years.

He said at present, most of the company's clients are in the

auto and electronics parts business. Toll, which has long experience in the auto parts and electronics industries, should enable the company to expand its client base.

Toll Group is one of the top five transport and logistics companies listed on the Australian stock exchange. Last year the company's sales totalled US$8 billion (Bt299.3 billion).

KPN Group has a plot of land, factory and warehousing close to Suvarnabhumi Airport and Kris said Toll saw this as an opportunity to expand in Thailand by choosing to ally with KPN Group.

KPN-ST Logistics recently acquired its seventh warehouse, increasing its total space to 65,000 square metres.

The company has also signed up new clients including Samsung and Philips Electronics. Its sales in the first half of the year were Bt800 million.

KPN Automotive Plc, which operates "cold forging" auto parts, Kris said that the company's first-half performance was satisfactory because the decelerating domestic growth was offset by the continuing high orders from overseas, especially the US.

He said the company planned to increase its exports from 26 to 50 per cent within two years to reduce reliance on the domestic market. In the first half this year, it recorded sales of Bt1.4 billion, a rise of 14 per cent on last year. Its profit in the first half was Bt97.8 million, compared to Bt92 million last year.

Kris expected that in the second half the company should see sales of Bt1.6 billion. The turnover for the whole year should reach Bt3 billion, compared to Bt2.5 billion last year.

He forecast that next year, sales should reach Bt3.6 billion largely because of expanding export markets, especially the US.

Watcharapong Thongrung

The Nation