Sep. 18, 2013
LECIP HOLDINGS CORPORATION (Motosu City, Gifu, Japan, President Makoto Sugimoto) has established a joint venture in Thailand with a local subsidiary THAI INDUSTRIAL PARTS LTD. Joint venture will specialize in sales of the automotive lighting and other electrical equipment. With the expansion of automotive industry in South East Asian markets, in addition to our support to the local clients, the joint venture will focus primarily on sales of the automotive lighting and continue to develop the demand for our core products. For the end of FY12/2018 we are targeting the sales of JPY1 billion.
1. Background and the purpose for establishment of the subsidiary
Starting with the major domestic truck producers, Japanese automotive manufacturers have already established a great presence in Thailand. With recent expansion of infrastructure works and positive economic developments, Thailand and South East Asia experienced a positive increase in logistics operations. Basing on those favorite tailwinds, we expect strong economic growth to continue.
Following the increase in Capital investments with domestic truck makers and with openings of new factories, we expect the substantial volume increases from production lines. In order, to follow this increased demand for our core products, namely Truck LED lamps, luggage compartment lamps, etc, we decided to establish the new subsidiary in Thailand.
LECIP GROUP has a long term experiences in Thai market. Previously, our factory was producing Neon Transformers in Thailand for over 20 years. Based on those long-year experiences and positive business references in the area, we decided to use Thailand as a base, and focus on the expansion of sales of our core products to the whole South East Asia. In the future, we are aiming to expand the offering also with our new strategic products, namely systems for Automated Fare Collections and Industrial equipment.
To achieve the priority tasks from our Mid-range management plan “+1=2015 (PLUS ONE 2015)” namely, “Expanding sales of LED products on domestic and overseas markets” and “Strengthening the international partnerships and creation of a number of strategic products” we will continue strengthening our overseas expansion.
2. Overview of joint venture
| 1) | Company name | LECIP THAI Co., Ltd. |
| 2) | Location | Kingdom of Thailand, Bangkok
|
| 3) | Establishment date | 01.10. 2013 (planned) |
| 4) | President | Masahiro Hashimoto
|
| 5) | Capital | THB5.0 million |
| 6) | Line of business | Sales of automotive lighting, electrical equipment for buses and industrial equipment |
| 7) | Number of employees | 5 |
| 8) | Ownership structure | LECIP HOLDINGS CORPORATION
THAI INDUSTRIAL PARTS LTD
Others (Thai local companies)
| 49%
48%
3% |
3. THAI INDUSTRIAL PARTS LTD. overview
| 1) | Company name | THAI INDUSTRIAL PARTS LTD. |
| 2) | Location | Kingdom of Thailand, Samutprakarn
|
| 3) | Establishment date | 24.10. 1989 |
| 4) | President | Naohiro Hamada
|
| 5) | Capital | THB50.0 million |
| 6) | Line of business | Press and sheet metal working |
| 7) | Number of employees | 250
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Inquiry
LECIP HOLDINGS CORPORATION
General Affairs PR
TEL +81-58-324-3121 / FAX +81-58-323-2597
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