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Japanese connection enhances innovation and design

Pruksa Real Estate

Pruksa Real Estate

Collaboration with home products giant Lixil a key factor in 'Pruksa Creative Innovation Intelligence' concept

Pruksa Real Estate is collaborating with Japanese-based Lixil Group to create innovatively designed products for its residential projects and serve demand under the "Pruksa Creative Innovation Intelligence" concept.

Chief operating officer Lersuk Chuladesa said that under the concept, the listed company is seeking to develop projects with a focus both on quality and meeting the exact demand requirements of customers. As a result, Pruksa is developing innovation in both its construction and design.

Its collaboration with Lixil enables the company to develop and use quality home accessories and interior products for all of its residential projects, he said.

"We have had a long relationship with Lixil for up to 20 years, using its home accessories and interior products. We also give information about our customers' needs to Lixil and they make to order and design home accessories to match our demand and our project design," he added.

Lixil Corp, the market leader in its field, produces a comprehensive line of living and housing-related products and services.

It recorded global revenue of US$14.3 billion (Bt461 billion) in its last fiscal year through to March, with $12 billion coming from the Asian market, $1.4 billion from Europe and $900 million from North America. The group targets revenue of $17.5 billion in 2015.

It took over American Standard in Asia and the US, and purchased Germany-based Grohe, which is the largest maker of sanitary fittings in Europe, in September.

Craig McEachern, general manager of Lixil Greater Thailand and Pacific and managing director of Lixil (Thailand), said the company had a long relationship with Pruksa in providing home accessories to the developer.

"For some product categories, Pruksa will order a special design to match the design of its residential project, and we also will redesign our products to meet Pruksa's demand," he said.

The Japanese giant is also making Thailand its design hub in Southeast Asia, which will support the development of innovative design products for its customers, both property firms and end-users, he said, adding that this would help its customers in Thailand get the best home accessories.

"We have a global research and development budget of between $200 million and $300 million a year. This will help us to develop innovative design and quality for property developers and end-users," he said.

Bt2.1-billion prefab plant

To support its Pruksa Creative Innovation Intelligence goal, the developer is investing Bt2.1 billion to build a second prefabrication plant, in Rangsit, Pathum Thani. The facility is scheduled to commence operations in the third quarter of next year.

The new plant will have a precast-concrete-panel capacity to build 480 detached houses and townhouses a month, which when combined with its existing plant in Pathum Thani's Lam Luk Ka district, will give an overall monthly capacity of 1,120 units.

The new facility will use German technology by utilising an automatic system and being controlled by a computer system, which will reduce construction deflection in its panels.

The system also has a concrete-recycling system, which will make the construction process more environment-friendly and also reduce waste from the construction process. This will be the first green factory producing precast concrete in Thailand, Lersuk said.

Following the new investment, the company targets growth of at least 10 per cent next year, from this year's targeted presales of Bt45 billion.

This year's figure was revised up from Bt41 billion after the company recorded presales of Bt41 billion in the first 11 months, he said.

Meanwhile, the developer plans to launch 50 residential projects worth Bt50 billion combined next year, which will boost both presales and overall revenue by more than 10 per cent.

The recent 0.25-percentage-point cut in the policy interest rate to 2.25 per cent will help the market, the chief operating officer added.

Pruksa currently has a Bt45-billion backlog of units already sold and waiting to be transferred to customers. Bt16 billion-worth will be transferred this year, and the remainder next year and in 2015.

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