BTMU REPLACES BAY'S CEO, PUTS OWN DIRECTORS ON BOARD
Bank of Ayudhya yesterday restructured its management team and appointed a new chief executive officer after the successful voluntary tender offer by Bank of Tokyo-Mitsubishi UFJ.
According to BAY's filing to the Stock Exchange of Thailand, BTMU will hold 72 per cent of BAY.
Noriaki Goto will be the new chief executive, replacing Janice Rae Van Ekeren, who will become a deputy CEO. Goto will also be a director of BAY, replacing Pongpinit Tejagupta.
Three more board directors were appointed - Kanetsugu Mike to replace Xavier Pascal Durand, Takeshi Okasawara to replace Pornsanong Tuchinda and Go Watanabe to replace Virojn Srethapramotaya.
The positions will go into effect on January 2.
BTMU will integrate its Bangkok branch with Krungsri through a contribution in kind within one year from the date of the acquisition of Krungsri shares through the tender offer. In exchange for the contribution in kind, Krungsri will issue 1.14 billion shares to BTMU, and BTMU's ownership in Krungsri is expected to become 76.44 per cent after the integration.
Krungsri is listed on the SET and will remain there after the tender offer.
US EXTENDS STEEL DUTIES
Thai steel producers will still face anti-dumping and countervailing duty for exports to the United States, the US International Trade Commission has decided.
The USITC determined that revoking the existing anti-dumping and countervailing duty orders on hot-rolled steel products from Thailand, mainland China, India, Indonesia, Taiwan and Ukraine would likely lead to continuation or recurrence of material injury to the domestic industry within a reasonably foreseeable time.
The action comes under the five-year review required by the Uruguay Round Agreements Act. The agreement calls for countries to revoke an anti-dumping or countervailing duty order, or terminate a suspension agreement, after five years.
TURBO-PART OUTPUT TO RISE
Mitsubishi Electric plans to increase production of parts for environmentally friendly vehicles in Thailand, responding to rising demand from European and other automakers, according to a news report.
Mitsubishi's facility in Rayong manufactures turbo actuators, which make rotation more efficient in turbocharged engines.
Nikkei reported that Mitsubishi Electric made turbo actuators at only the Thai plant and its Sanda works in Hyogo prefecture in Japan, exporting them around the world. By 2016, it aims to be able to supply 2 million vehicles a year - twice as many as today.
Turbocharged engines produce lower emissions than naturally aspirated engines without sacrificing horsepower. In the past few years, European manufacturers have been hurrying to install them in smaller vehicles to improve fuel economy.
JOINT PLASTIC RECYCLING EFFORT
Pepsi-Cola (Thai) Trading and Wongpanit Recyclable Waste Separation have joined forces to promote recycling of bottles made of PET (polyethylene terephthalate), a type of plastic.
Under the partnership agreement, Wongpanit agreed to offer an additional Bt1 per kilogram above its standard buy-in price for PepsiCo's used transparent and coloured PET bottles.
SAMART TELCOMS AND LOXLEY TEAM UP FOR OVERSEAS EXPANSION
Samart Telcoms' subsidiary, Samart Communication Services, has entered into a joint-venture agreement with Loxley with a view to overseas expansion.
SLA Asia has been set up with Bt30 million of registered capital. It will be 60 per cent owned by Loxley and AIT Holding, 30 per cent by Samart Communication Services and 10 per cent by the public.
The new business unit will operate IT and communication systems and the trading of all kinds of equipment abroad.
GROWTH OF 4% EYED NEXT YEAR FOR HANDICRAFT EXPORTS
Thai handicraft exports are expected to grow 4 per cent next year to US$846 million (Bt27.3 billion), against flat growth this year, due to an expected recovery in demand in many major markets - mainly the European Union, Japan and the United States.
Pimpapaan Chansilpa, chief executive officer of the Supports Arts and Crafts International Centre of Thailand, said exports had been negatively affected by the global economic slowdown as well as the domestic political conflict, which had reduced the number of visitors to the Kingdom.
She expressed concern that if the political conflict were to be prolonged to the middle of next year, handicraft shipments could fall further than currently expected.
This year, the centre projects that exports will expand by just 0.14 per cent to $815 million.
Exports in the first 10 months of the year were valued at only $683.1 million.
INDORAMA REPORTED TO BE SHIFTING PRODUCTION FOCUS
Indorama Ventures, the world's leading maker of PET (polyethylene terephthalate) resins, is shifting its production focus to emerging markets, according to a news report.
A Nikkei report said the Thai company is ramping up production capacity in such countries as the Philippines and Nigeria by building or acquiring plants to meet growing local demand.
Meanwhile, Indorama has closed a resin-manufacturing plant in the UK amid sluggish demand in Europe.
Indorama will start manufacturing PET products, including plastic bottles, in the Philippines. It has set up a wholly owned manufacturing subsidiary in the country and plans to spend US$6.5 million (Bt210 million) to build a plant with an annual production capacity of 7,200 tonnes. The factory will supply PET products mainly for the growing local market.
As a result of these moves, Indorama's PET container production network will be composed of five plants, up from the current two in Thailand and one in the UK.
Nikkei reported that the Thai firm is also poised to expand production in the Middle East in the first half of next year.
IMPORTERSâ€™ WEAK ECONOMIES HIT THAI APPLIANCE EXPORTS
Exports of electrical appliances grew fractionally at 0.72 per cent year on year during the first 10 months of 2013 to US$19.33 billion (Bt624.2 billion), held back by weak economic performance in major importing countries, Kasikorn Research Centre reported.
KResearch projects a 0.4-per-cent gain in Thailand's full-year electrical-appliance exports compared with last year, with a total value of $22.88 billion.
Looking ahead to 2014, several factors should support a brighter trend. Overall exports to Asean are expected to double - plus economic recoveries within major trade partners, as well as market opportunities due to the 2014 World Cup football tournament, which should boost demand for television sets and parts.