Phelps Dodge Thailand unveiled its strategic plan for 2022 stepping up its game with an investment of over one billion baht and an improved production lineup, becoming the first provider of 500-kV Extra-High Voltage cables in Southeast Asia, responding to the growth of large utility projects around the world. The company is also proactively tapping into high-growth markets overseas to increase its export ratio to at least 20%, and targeting 30% revenue growth and market share, with a doubling of growth by 2026
Mr. Kittisak Jitprasertngam, Chief Executive Officer, Phelps Dodge International (Thailand) Co., Ltd. noted that over the company's 50-year journey as a leading brand pursuing its mission to produce world-class power cables to meet various types of utility demand, Phelps Dodge has integrated technology and innovation into all its wire and cable products, having demonstrated its business strength with strong growth, achieving a CAGR of 20% from 2017 to the present period.
Phelps Dodge's wire and cable products are developed to meet every functional need, from low voltage, medium voltage, high voltage, to extra high voltage, in response to different industries domestically and internationally. The company supplies businesses in the Building and Construction Group with wires and cables used for high-rise buildings, public buildings, and extra-large buildings; the Utilities and Infrastructure Group with wires and cables used for utilities, power plants, power stations, and overhead and underground power transmission; the Industrial, Oil & Gas, and Petrochemical Group with wires and cables used for general industries, the petrochemical industry, polymers, and the oil and gas industry; the Mass Rapid Transportation Group with wires and cables used for public transport systems (BTS, MRT, Airport Rail Link, and high-speed trains); and the Renewable Energy Group with wires and cables used for power production from clean energy.
To continue to achieve consistent growth, the company has set a strategy that builds on its mission of delivering high-quality wire and cable products with an eye to sustainable growth by increasing its business activities in new markets with expanding utility sectors and large-scale projects with high growth potential. This includes countries in the Asia-Pacific which have the highest forecast annual growth rates - at 7% over the next decade.
To strengthen the momentum in reaching these planned goals, Phelps Dodge Thailand is enhancing its production with an additional production line for extra high voltage cables, with an investment of 1,000 million baht. This will be divided into a 400-million-baht investment for enhanced underground cables of up to 500 kilovolts (kV), featuring the XLPE insulated cable produced with imported machinery powered by Nokia Maillefer (Finland)'s world-class technology. This new system will enable high-precision and real-time production process control, providing the highest level of safety. Phelps Dodge Thailand is also providing a lightning impulse voltage test laboratory of up to 2000 kV. The remaining 600-million-baht will be invested in production enhancements and growth to cope with increased utility demand in the future. The company expects to start production of the 500 kV extra-high voltage cables in the second quarter of 2022.
"We could see the future trend for these extra-high voltage cables with demand increasing both domestically and beyond, opening up 'global markets.' We then decided to conduct a study and planned to expand the production line to meet this demand. The addition of this production line will boost our capacity of high and extra-high voltage cables by 50% from the current 80,000 meters per month. Phelps Dodge Thailand will therefore be able to support the expansion of large-scale power utility and become the first provider of extra-high voltage cables in Southeast Asia," said Mr. Kittisak.
Currently, the total market value of the wire and cable industry in Thailand is approximately 55 billion baht, with Phelps Dodge holding a roughly 20% market share. The majority of the company's revenue is domestic, at 80%, with the remaining 20% from international markets. Approximately 50% of Phelps Dodge Thailand's revenue is from the infrastructure sector and large-scale projects, including power plants, oil and gas facilities, general factories, and high-rise buildings. The remaining 50% is from distributors, both modern trade and general wire and cable traditional shops.
This year, the company is targeting 30% revenue growth and maintaining at least a 20% market share. For its operational performance in 2021, as of the third quarter (nine months), the company recorded total revenue of 10,182 million baht, an increase of 44% year-on-year from 7,019 million baht. The growth was from both domestic and overseas markets.
"Continuous improvements in our operational results driven by increased sales, domestically and internationally, have shown that we truly understand the market and that there's a growing trend in all types of wires and cables," said Mr. Kittisak, adding, "Increasing demand in utilities, for both industrial and household use, infrastructure development and expansion in public transport to cope with population growth globally, as well as technological advancements and innovations will replace traditional ways of living - and all of these factors are important in supporting the growth of the wire and cable business in the future."
In 2022, Phelps Dodge Thailand will continue to implement its strategic plan by targeting at least 30% revenue growth, increasing its market share to 30%, expanding the export market from the current 42 countries to 50, increasing the export ratio to 25-30%, and following the 'roadmap' with the ensuing goal of 20 billion baht in sales revenue by 2026.
"Wires and cables may seem irrelevant, but in fact, they are crucial to every type of industry - and highly relevant to us. Though invisible, as they are hidden in conduit and walls, the issues of quality and safety cannot be overlooked. Phelps Dodge remains dedicated to bringing innovation and world-class wire and cable technology to support energy consumption in Thailand and empower the growth of industries, which will further build and fulfill our world of tomorrow, creating new and safer ways of living for a better future for us all," said Mr. Kittisak.
Source: ABM Connect