Ajiya begins expansion in Thailand

Malaysia remains an important country for Ajiya Bhd, a major integrated building-system provider, although it is considering expanding its operations into Indonesia, Thailand and Vietnam.
Managing director Chan Wah Kiang said recently that the company anticipated good business prospects at home, especially with a few key projects in place. For instance, he said the Ninth Malaysia Plan and the Iskandar Development Region would offer many opportunities. Ajiya produces a wide range of products including safety-glass products, window frames and metal roofing and doors. As a Malaysian company, it has an important role to play in the construction sector by supplying high-quality building materials as this projects a good image of the sector. "Manufacturers must also be innovative and focus on developing new products via research and development activities,'' Chan said, adding that having been in operation for 16 years, Malaysia was a good place to start for Ajiya before expanding its operations elsewhere. Despite being around for many years, he still considered the company as "a new kid on the block" and if it were to expand overseas, it would start on a smaller scale. "Indonesia, Thailand and Vietnam are the first three Asean countries that we are looking at to set up operations,'' said Chan, adding that Thailand was a country to watch with its economic vibrancy and good prospects in the construction industry. On Vietnam, he said it was becoming a favourite spot for many multinational corporations to relocate their operations. He said Thailand would be Ajiya's first overseas venture and in the pipeline was a new metal-forming plant in Bangkok, which is expected to be operational by the middle of the year to cater to the Thai market and meet regional demand for smaller roll-formed products. It is investing US$300,000 (Bt10.4 million) from internal funds in the 1,000-square-metre plant, whose built-up area might later be extended to 2,000sqm. "Our vision is to become a top producer in the building material industry in Asean by 2010, and the company is on the right track,'' he said. Initially, Ajiya will focus on metal roll-forming production in the three countries, as it is comfortable doing what it knows best. The company will have to come out with products that are easily to distribute, rather than bulky items where delivery would be a problem. On overseas expansion, he said it could do so via acquisitions, joint ventures, or it could grow organically. Chan added it was not an easy task, as the company had to compete not only with other local companies in those countries but also foreign players. Ajiya has been placing personnel with potential to manage its Asean operations at its Malaysian plants to acquire the necessary knowledge and skill. "These competent managers are responsible for overseeing our foreign operations and their experience will come in handy,'' he said. He said the company's main task was to build and strengthen its position in Indonesia, Thailand and Vietnam. He envisaged that a few years from now, the Ajiya brand would be a household name in these countries in metal roll-formed products. Chan said the expansion would not only involve an increase in productivity, but also include products such as architectural safety glass, for which it is famous. "Our aim is to become an integrated building materials supplier in these places and this could probably be achieved after 2010,'' he said. As a one-stop integrated centre, it could deliver its products to clients according to their specifications. The company has no plans to set up operations in China and India. Chan said Ajiya was still considered too small a player to compete in these countries, which are more suitable for conglomerates. Moreover, it would rather export its products there first. "You have to be a giant to go into such markets and have full commitment if you want to operate there." He said India looked a promising market and several parties had expressed interest in working with Ajiya.
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