First Bosch fuel injector facility in Southeast Asia
New research and development facility to further enhance advanced automotive technology business in Thailand
Bosch, a leading global supplier of technology and services, ended its 2015 fiscal year with 10.8 billion baht (285 million euros) in consolidated sales in Thailand, thus registering a strong growth of 22 percent compared to the previous year. "Thailand continues to be an important market for Bosch. We anticipate an increased demand for our products and services following the government's policies to stimulate the economy, and push through the development of key infrastructure projects," said Joseph Hong, managing director of Bosch in Thailand. "With our solutions 'invented for life', we help make a difference in the country since 1923", he added.
The number of associates employed at Bosch in Thailand in 2015 stood at more than 1,100, a year-on-year increase of 12 percent. This number is expected to further increase in 2016 in line with the continued business expansion.
Development of Bosch business sectors in Thailand
The production output of Thailand's automotive industry increased slightly in 2015 from the previous year due to a growth in exports and despite a decline of the local market. Bosch's Mobility Solutions business sector in Thailand saw an increase in sales revenue compared to the previous year, mainly driven by sales of the Chassis Systems division. The Industrial Technology business sector expanded its operations in hydraulic solutions and industrial packaging in 2015. On this basis a positive performance is anticipated for 2016. While the Consumer Goods business sector was impacted by the slowdown in the domestic economy in 2015, the Energy and Building Technology business sector benefitted from the government's approval of several important infrastructure projects in the second half of the year and registered positive growth.
Investment of one billion baht (26 million euros) in manufacturing facility in Thailand
Bosch remains confident for the market outlook in Thailand as it continues to be automotive hub. The company is constructing its first plant for the manufacturing of gasoline injection systems in Thailand – and the Southeast Asia region. Bosch currently has seven fuel injector factories worldwide, out of which three are located in Asia (China, Japan and Thailand). In 2016, Bosch plans to invest approximately one billion baht in building and infrastructure of the new plant. It will be capable of producing one million fuel injector units every year, and will commence operation in mid-2017. This new activity is anticipated to generate more than 800 jobs by end of 2017. "With the new fuel injector plant we are able to meet the increasing demand of our customers in the region. The plant will also provide great career opportunities for the local workforce", said Hong.
New automotive R&D facility
Bosch is also planning to set up a research and development (R&D) facility in the same area of fuel injector manufacturing site to further enhance the company's automotive and mobility solutions business in the country. "The research and development facility will attract skilled engineers from diverse backgrounds, especially in the automotive and mechanical engineering fields", Hong said. It will be the first R&D facility of Bosch in Thailand, underlining the country's role for the Bosch Group.
Bosch stays on course towards sustainability
Over the course of 2015, Bosch Thailand continued to strengthen its longstanding commitment to provide educational opportunities to less privileged children and contribute towards their overall well-being. The company has been continuously supporting the "Hand to Hand" Foundation in Pattaya, which focuses on providing education to young students from disadvantaged backgrounds. At the "Skills for Life" Foundation in Chiang Mai, Bosch continued to support hill tribe youths to achieve autonomy and self-sufficiency by providing a full range of essential kitchen appliances such as ovens, microwave ovens and refrigerators, which have already become a fundamental part of fund-raising activities at the foundation. As vocational skills are highly valued in today's employment market, Bosch continues to work closely with Pradabos, a foundation that promotes vocational skills training, to jointly develop vocational courses, which align those skills to the market demand. Under the German-Thai Dual Excellence Education program, Bosch also works in collaboration with the German-Thai Chamber of Commerce to promote youth development and education.
Bosch Group worldwide business outlook for 2016
Following a record year in 2015, the Bosch Group wants to continue its growth trend this year. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2016. Speaking at the company's annual press conference in Germany, Bosch CEO Volkmar Denner said: "We plan to grow not only with innovative products, but also with innovative services." In the connectivity business, Bosch focuses on the "3S's": sensors, software, and services. The company is increasingly using connected services to build on its broad basis in the hardware business. As it does so, Bosch benefits not just from its technological diversification, but also from its wide-ranging industry and domain expertise. The newly created Bosch Global Service Solutions division, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.
In Asia Pacific, the Bosch Group boosted its sales in 2015 to a total of 730 billion baht (19.2 billion euros), thus registering a nominal growth of 17 percent on a comparable basis (2.8 percent after adjusting for exchange-rate effects). At 27 percent of total Bosch sales revenue, the region's share of sales remained at the high level of the previous year.