2006 REPORTS > THAILAND - February 25, 2006
THAILAND
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A perfect partnership scores big in Southeast Asia  
With its state-of-the-art facilities, Kulthorn Kirby is well positioned to become a major
international exporter and the market leader in Southeast Asia.

Thanks to investment incentives and appropriate support from the government, Thailand has emerged as the top producer of compressors in the 10-state Association of Southeast Asian Nations (ASEAN). And at the forefront of the industry in Thailand is Kulthorn Kirby, which manufactured the first hermetic compressors in the country more than 25 years ago.

When Kulthorn Kirby was established on March 24, 1980, the company did not expect growth to come so quickly and activities to spread so far. At that time, production capacity was initially at 500,000 units a year and 11 years later, the company is listed on the Stock Exchange of Thailand.

‘‘When we began, I did not imagine the company growing to where it is today. Our factory space has grown from just 8,000sq. meters to approximately, 70,000 (sq. meters) today. In 2005, we and our subsidiary KPC produced roughly 4.1 million compressors and we are on track to produce over 5 million units this year,’’ explains company president Suraporn Simakulthorn.

Last year, Kulthorn Kirby exported 65 percent of its output to China, Asia, the Middle East, Oceania and the European Union. After expanding its production capacity last year, the company is on track to reach its goal of becoming a major international exporter and the market leader in ASEAN.


‘Thailand is a very different country today. We are living in a completely different world — a world without boundaries. In order to survive in this competitive world, Kulthorn will continue to produce products with the highest quality international standards at a competitive price and guarantee on-time delivery’
‘‘In early 1980, there were many air conditioner and refrigerator manufacturers in Thailand but compressors had to be imported until we began production. Having local production of hermetic compressors is vital if the air conditioner and refrigerator industries in Thailand is to be more competitive and selfsufficient,’’ says Simakulthorn.
Kulthorn Kirby President Suraporn Simakulthorn

The Kulthorn Group, made up of 10 companies, has a long history of successful American, Australian and Japanese partnerships. It tied up with Tecumseh and Kirby in 1980 to produce its first hermetic compressor in Thailand, with Mitsubishi Heavy Industries in 1988 to produce rotary compressors for air conditioners under the THACOM brand, as well as with Hitachi Powdered Metal in 1995 to make powdered metal components for air conditioners and the auto industry.

In mid-2004, Kulthorn partnered with the Premier Group to form Kulthorn Premier Co. Ltd. (KPC) and purchase the Sanyo Universal Electric Co. compressor factory in Thailand. After a reorganization during its first year of operation, the company reported a profit.

American, Japanese and Australian partners and customers continue to build Kulthorn’s business. In fact, Fujitsu General in Thailand, which produces about 2 million air conditioners a year, is Kulthorn’s largest customer. Aichi Electric, a shareholder in affiliate Kulthorn Electric, imports electric motors to Japan.

‘‘I would like to thank our international partners from the United States, Australia, and Japan. I believe we work very well together and I look forward to many more years of continued success,’’ Simakulthorn says.

‘‘Thailand is a very different country today. We are living in a completely different world — a world without boundaries. In order to survive in this competitive world, Kulthorn will continue to produce products with the highest quality international standards at a competitive price and guarantee on-time delivery,’’ he adds.

www.kulthorn.com

 
 
Table of Contents
Country Information
Roaring toward success
A message from Thai PM Thaksin Shinawatra
Creating the perfect climate for today’s world
Denso gears up for more global competition
A perfect partnership scores big in Southeast Asia
A farmer’s tale
From strength to strength: The Thai economy sets the pace in Southeast Asia
A smooth transmission
It’s all in the chemistry
Precision, proximity, process, products
The business of wellness: A look at spas in the 21st century
The Thai auto industry gets a boost
Following the global paper trail
Engineering beyond borders
Working on another 100 years
Keeping things moving in Thailand
Old player, new game
Keeping Thailand’s food industry safe
Sowing the seeds of success
A newcomer steels the thunder
Getting preferential treatment in Thailand
A little more of that human touch
Making the good life even better


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