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Published on April 1, 2008

He said the move was in response to intensifying competition among construction firms in the local market, which had squeezed the profit margins of bid winners, and the unstable political situation, which had delayed the launch of several state projects.

"Therefore, we must create new markets abroad," he said.

The company was prequalified to take part in oil and gas bidding in Oman for a project valued at US$20 million to $100 million (Bt630 million to Bt3.2 billion).

TRC has already registered a wholly owned subsidiary, TRC International (Hong Kong), to oversee its foreign investments. It will set up additional subsidiaries in countries where it will participate in projects.

"We cannot concentrate only on the domestic market, given the limited pie. We must create new opportunities abroad and improve our capacity and staff to tap these frontiers," Smai said.

TRC will focus on pipeline, fabrication and water-desalination projects in foreign markets and capitalise on its partnership with global players like China National Petroleum in tapping new markets.

"We're also looking for a market opportunity in Israel," Smai said.

As of February, TRC and subsidiary Sahakarn Wisavakorn had 14 projects, 10 of which belonged to TRC and had a combined value of Bt1.565 billion.

TRC plans to bid on eight projects this year and in next year's first quarter worth a combined Bt25.6 billion. Most are pipeline and processing-plant projects for PTT and its subsidiaries. The company is confident of winning 30 per cent of the total project value.

Last year, TRC posted revenue of Bt1.607 billion, up from Bt736 million in 2006. Its net profit was Bt96 million, up from Bt50 million.

Smai added that TRC had also upgraded its staff capacity for engineering projects, in order to help boost its gross profit margin further.

Watcharapong Thongrung

The Nation