Hemaraj notes 'reasonable start' to year

Corporate July 10, 2014 00:00


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HEMARAJ Land and Development sold 297 rai (47.5 hectares) of land in its industrial estates in the first half of this year.

The company signed 20 contracts, 13 of which were new customers and the rest project expansions from existing clients. Half of the contracts were with Japanese companies and more than 25 per cent were with the automotive industry, Hemaraj president and chief executive officer David Nardone said.

“This is a reasonable start to 2014. We had the consideration [issue] of political disruptions as well as [a Bt600-billion backlog of Board of Investment] approvals just commencing from June of this year. There is renewed optimism of investor confidence as domestic demand and export markets continue to recover,” he said.

“We see high activity levels, broad country representation, and a return to a more normal run rate. Full-year guidance will be updated further at the time of our second-quarter results.”

He said he also believed that industrial investment in Thailand and its business strategy remained attractive long-term. Thailand continues to be a preferred location for manufacturing and growth because of reasonable costs, good infrastructure, and expanded market access.

On the positive side, in the second quarter, utilities demand increased 10 per cent by volume in comparison with the first quarter and 11 per cent year on year.

Hemaraj is a developer of industrial estates, utilities, power plants, ready-built factories, logistics parks, and property solutions.

The company operates eight industrial estates covering 41,829 rai, with automotive, petrochemical and other clusters comprising 628 distinct customers, 218 automotive customers with 334 automotive contracts, 953 land or factory contracts, and a customer investment estimate of US$26 billion (Bt839 billion).