Thai machinery maker Somboon Advance Tech sets up JV with China’s Siasun Robotics
BANGKOK, NNA—Thailand’s major auto parts and machinery maker Somboon Advance Technology Public Co. (SAT) has formed a joint venture with China's robotics manufacturer Shenyang Siasun Robot & Automation Co. (Siasun Robotics) to provide full-system integration services for the automotive and auto parts industries.
Incorporated in Thailand, Somboon Siasun Tech Co. will also focus on machinery industry including agriculture machinery in the country, according to a filing by SAT to the local stock exchange last Friday.
SAT, the leading company of the Somboon Group, manufactures and distributes motor vehicle parts for passenger cars, trucks and agricultural machinery.
Somboon Siasun Tech is expected to leverage on Siasun Robotics' capabilities in robot and automation equipment. The listed enterprise, which belongs to Chinese Academy of Sciences, is one of the leaders of China's robotic industry.
It has produced a wide array of robotic and automated products such as industrial robot, automated guided vehicle, automated warehouse, and smart factory.
The joint venture investment of 30 million baht ($969,000) came from equal contributions by the two partners, a spokesman for Somboon Group told NNA on Monday. SAT is holding 50.0003 percent share while Siasun takes up the remaining 49.9997 percent, according to the filing.
The registered capital of 30 million baht has been divided into 300,000 ordinary shares, valued at 100 baht each.
SAT has been supplying automobile parts to eight Japanese companies including Mazda, Toyota, Honda and Isuzu. Mitsubishi remains its biggest client, accounting for 38 percent of its sales in the first quarter of 2020.
Somboon Siasun Tech will solely provide software, engineering and smart warehouse system to automobile industries. It is set to support Nippon Kikai Engineering Co., which also provides automation engineering system and design, following Somboon's investment in the company last year, said the spokesman.
The partnership with Siasun Robotics will enhance production efficiency for SAT, said the spokesman.
While details of the location of factory operations for Somboon Siasun Tech are not available yet, its office is currently located in Bangna district in Bangkok.
SAT operates production plants in Samutprakan and Rayong provinces. Companies under its umbrella are Somboon Malleable Iron Industrial, Bangkok Spring Industrial, International Casting Products, and Somboon Forging Technology.
In 2019, the Somboon Group achieved sales of 8 billion baht and a profit of 895 million baht about the same as the profit in the year before.