Marketing manager Metha Rojanachaichanint said TCL's headquarters in China had earlier decided to invest in a new white-goods factory, including washing machines, which would have required several hundreds of millions of baht in capital.

"However, in the face of the current economic and political uncertainties in Thailand, headquarters has decided to delay its investment project in the Kingdom at least for a year to wait for any sign of economic and political stability," he said.

He added that the new factory would serve both the domestic and export market through TCL's distribution network around the world.

TCL's plant in Pathum Thani currently produces cathode-ray-tube (CRT) televisions with a production capacity of between three million and four million sets per annum.

Metha said the investment freeze in Thailand would not affect any collaboration projects between TCL and Philips Electronics, the Dutch consumer electronics manufacturer, in developing and producing audio-visual products, using TCL's production facilities.

The TCL plant in Thailand will maintain its role as a manufacturing base for Philips' audio-visual products, particularly television sets.

"We will, however, invest about Bt100 million in a marketing and advertising budget this year. Half of the budget will be spent on below-the-line activities including event marketing, trade and consumer promotion campaigns in cooperation with 300 dealers throughout the Kingdom," said Metha.

Metha said TCL Electronics (Thailand) last year spent almost Bt200 million in marketing and media activities by being an official sponsor for the broadcast of the Fifa World Cup 2006 in Thailand.

Metha said the company had lowered its retail prices by between 10 and 15 per cent since the end of last year. The adjustment is aimed at stimulating demand. Thai consumers have slowed down their purchases of electrical appliances amid the current economic and political difficulties.

"The uncertainties will also impact our ambition to become one of the top five players in Thailand in the next three years and to be one of the top three in five years," said Metha.

He said that TCL started its sales and marketing operation in Thailand in 2005 and now lags behind major players in the market including Samsung, Sony, Panasonic and LG.

"We will remain active in the market with the launch of many new product line-ups including air-conditioners, top-loading washing machines, two or three new models of CRT televisions, 32-inch LCD TVs and notebook computers," said Metha.

Metha said the company had revised its sales target from 15 per cent growth at the beginning of this year to a flat rate.

"Amid economic and political difficulties, we will be quite satisfied if we can achieve the same sales record as last year of Bt3.5 billion," he added.

Kwanchai Rungfapaisarn

The Nation