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Vol. 4: No. 6, June 2009 Clean-air concerns lift Kohsan revenues (Bangkok Post, 26.05.2009) |
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Kohsan (Thailand), the local subsidiary of the Korean electrical appliance and parts producer, says its domestic revenue will jump by more than 10% this year. The company hopes to almost double its air purifier business on the back of the spread of respiratory diseases, warmer climates and rising concerns over air pollution, said Cho Kyeong Sig, managing director of Kohsan Thai. Kohsan forecasts sales of 2 billion baht this year, up 11% on 2008's performance. The company, Korea's third largest electronic appliance manufacturer, operates two production plants in Thailand. One makes Scana brand air purifiers. The other, run by Kohsan Electronics, produces air compressors and filter parts for home appliance and car assemblers in Thailand, such as Samsung and Kia Motors. Scana is likely to be the company's main growth engine this year, contributing up to 50% of total revenue. Last year electronic parts supplied to local car assemblers accounted for 70% of domestic sales, with air purifiers making up the remaining 30%. ''Our focus will shift more into the air-purifying products because we believe this market is vast, as long as the public realises that air-conditioning is not the solution to fresh air,'' he said. The global economic recession has reduced the demand for automobiles, crimping Kohsan's parts business. But greater pollution concerns will increase its air purifier revenue, the company said. ''More activities will be used to educate the public on the usefulness of air purifiers in tropical parts of the world,'' said Mr Cho. The company also plans to export its air-purifier products to Australia, India, Malaysia and Singapore within the next two months, with expecting revenues of 5-10 million baht per month. ''While we will start exporting soon, we have set a target that export revenue will provide 70% of our total income, because we are confident that when more customers are aware of the use of air-purifiers the sales will inevitably jump,'' he said. The air purifying market currently suffers from high production costs. However, Kohsan has set aside a 30 million baht research and development fund this year to make its products more competitive. ''We aim to make affordable air-conditioning, which features an air purifier in a single unit. This should be able to beat the conventional air-conditioners in the market,'' he said. Kohsan's plant in Rayong province is currently running at 25% capacity, from a total annual production capacity of 500,000 air purifier units. It plans to increase the capacity utilisation by 40% to 65% to serve the growing export market. The company recently launched new purifiers, a portable unit, and ventilators and purifying systems from commercial and office buildings. ''I expect the local economy to pick up by third quarter and sales of air-purifier should grow fast next year when construction projects resume as the economy improves,'' he said. Kohsan is one of Korea's leading investors in Thailand. The company has injected US$1 billion in to the country since it started operations here in 1997.
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