Wednesday, August 5, 2009

Thai Obayashi expects revenue to fall 30%

Construction firm Thai Obayashi estimates its revenue will drop by 30 per cent to Bt6 billion this year, as the number of new projects is lower than last year following the economic slump.

President Sompong Chinta-wongvanich yesterday said most Japanese firms had reduced |their investment budget for |new manufacturing plants in Thailand. Most of them are |spending less and renovating or upgrading their plants rather |than expanding by building new facilities.

The company reported revenue of Bt9 billion last year.

Meanwhile, some property developers have delayed their investment, also contributing to Thai Obayashi's lower revenue target for the year, he said.

Thai Obayashi was establish-|ed in 1974 by Obayashi Corp |of Japan and four Thai share-|holders: Bangkok Bank, Siam Commercial Bank, the Crown Property Bureau and the Metro Group.

The company has work in |hand worth between Bt8 billion and Bt9 billion, most of it in the |private sector. Among its projects are the Anantara Hotel, the |St Regis Bangkok and Park Ventures.

The company yesterday signed a Bt2-billion contract to build |the Park Ventures project, which |is owned by Univentures. Construction will be completed by the end of 2011.

The project will comprise a grade-A office building and a |five-star hotel at the Ploenchit-Wireless intersection. Overall space will be 81,400 square metres. Kasikornbank is providing a Bt1.8-billion loan for construction.

Sompong said despite the economic downturn, the company had retained 600 staff, who are being trained in anticipation of the economic recovery.

"Two or three years ago, we |faced a shortage of labour when we had more projects on hand than now, but this problem was solved when the economy slumped," he added.

No comments: