1. Thailand Investment Opportunities In Machinery and Metal Working

2.  Thailand continues to industrialize, but is dependent on foreign industrial machinery for immediate future.  Industries in Thailand developed over the past decade with parallel increases in demand for machinery imports.  High demand for:  Food processing and farm machinery  Alternative energy/energy conservation machinery  Textile machinery  Automotive machinery  Mould & Die Industry Opportunities in Machinery

3. Year 2006 (Oct): Japan 27% China 17% USA 10% Taiwan 7% Million USD 1USD=40 THB

4. BOI Promoted Machinery and Equipment Projects (Oct 2006) Type # Projects Capacity (Units) Investment (Mil. USD) Food Industry59718.5 Farm Machinery 550,3086.2 CNC63,42923.8 General11810,774,291444.0 Tooling355,512,42648.2 Moulds & Dies307597,789806.0

5. Opportunities for Agro-Machinery (1) In 2005, over US$ 54 million in agricultural machinery was imported into Thailand for such diverse uses as soil preparation, harvesting, sorting grinding and milling.

6. Agro-Industry Machinery Needs Thailand needs to continually improve to remain competitive and meet increasing international standards Large and growing markets for: 4 Farm machinery 4 Food processing machinery

7. Opportunities for Food Processing Machinery High demand for such machinery products as drying, cooling and purifying machines; fruit, vegetable and cereal processing machines, and also for animal feeding. More than 9,000 food-processing companies create a high demand for packaging machinery such as filling, closing, sealing, wrapping and labeling machines. Demand for 600,000 tons of tinplate per year for packaging of agriculture products and canned foods

8. Textile machinery  Thailand dependent on imported textile machinery, particularly bleaching, dyeing, printing, finishing machinery.  Thailand imported over $500 million of textile production machinery in 2004

9. Textile Machinery Opportunities Investment opportunities also in other types of textile/garment machinery needed: Packaging, Test and control equipment, Production machinery Machinery for recycling businesses Machinery for metal industries Electrical control systems Large plastic injectors

10. Alternative Energy/Energy Conservation Machinery Investment Opportunities Manufacture of energy-saving machinery/equipment Manufacture of machinery/equipment using alternative energy

11. Mould & Die Industry Cabinet’s Support on National Mould & Die Industry The year 2004 –2009 Promotion Period Objectives Development of 5 Excellence Mould & Die Industry Centers  Leverage 20 educational institutes related to Mould & Die Industry  Leverage the standard of Thai mould & die industry to be in line with leading industrial countries  Train 7,700 workforce in the industry

12. Level of Technology for Mould & Die in Thailand Mould & Die for automobile (bodies) For semi-conductor For automotive parts, general electronic parts Home electric appliances Germany, USA. Japan Taiwan, Korea Thailand Asia At present, dies for car bodies are locally made in Thailand. Source: Thai-German Institute

13. Thailand is still in need of moulds & dies to produce the following products: Moulds for Die Casting - Engine block - Crank shaft - Front case - Oil pan - Gear box – auto - Safety parts : Master pump & Clipper brake Moulds for Plastic Injection - Automotive Electronic Control Unit (ECU) - Housing for automotive steering column - Automotive dashboard - Parts for digital camera & cellular telephone - Parts for notebook computer and PDA (personal digital assistant) Transfer press dies - Automotive body press die More Moulds & Dies Needed in Thailand

14. Specific industrial machinery needed: 4 Turning machines 4 Drilling machines 4 Milling machines 4 Grinding machines 4 Machine Centers 4 Gear Cutting & Finishing Machines 4 Die Sinking EDMS 4 Wire Cut EDMs 4 Laser Beam Machines 4 Plasma Arc Cutting Machines 4 Electron Beam Machines 4 Broaching Machines

15. Thailand: Automotive Hub of ASEAN  2006 production ~ 1.188 million units (World ’ s 14 th largest)  2006 Export 580,000 units  Largest in Southeast Asia  Capacity of 2.0 million units in 2010  World ’ s largest production of one- ton pickup trucks  860,000 units in 2006

16. 2010 Target—World’s Top 10

17. Auto assembly for local and export markets under AFTA and other FTA arrangements Auto part manufacturing to serve domestic and export markets Potential small car hub -- low fuel consumption NGV target: 256,600 NGVs by 2011 Investment Opportunities in Automotive Industries

18.  Export over US$36 Billion in 2005, 1/3 of total exports  Major products: HDD, IC, PCB, TV, A/C & other WG  The world’s largest producers of HDDs  Strong supporting industries for electrical appliances  Compressors, motors, plastic & metal parts Electronics and Electrical Industry