Yontrakit ready to kick start assembly lines for Volkswagen and Audi cars

The Yontrakit Group said it recently brought out the Volkswagen Passat prototype car from the YMC Assembly plant in Rayong, and is ready to kick start the assembly line to bring out about 2,000 units of Passat for the domestic market next year. The prototype model of Audi A6 will soon be available for inspection by Volkswagen specialists, said Yontrakit sources.

The assembly plant is also making Peugeot 406 and BMW Series 5 models for Yontrakit, and for BMW (Thailand). Talks have been going on with Germany’s Volkswagen Group over a plan to bring out another 2,000 units of the Audi A6 model next year. Meanwhile, Yontrakit has been in talks with France’s Peugeot, planning to make 3,000 units of the Peugeot 306 model in the same period - all for the domestic market.

Thai-made BMW models, in accordance with standards by German parent company, will use only 20% local parts. The content rules, which will be revoked at the end of this year, will be a boon to auto makers. Thai-made models will be certainly cheaper than imported units.

Top executives of Nation Group likely to quit ITV

A group of executives of the Nation Multimedia Group, which produces news programs for Thailand’s independent television network ITV, have planned to resign from the network after a revamp of the management led by the new chairman of ITV board of executives. The Nation’s group editor Suthichai Yoon and his younger brother and news anchor Thepchai Yong plan to lead a team of producers to resign, ITV sources said.

Suthichai last week resigned from the ITV board in the first major change in Siam Infotainment Co., operator of ITV. Changes have been made to the company’s leadership after Prakit Prateepasen, a vice-president of Siam Commercial Bank, became the board chairman last month. ITV has run in the red and is still suffering a daily loss of about Baht 1 million, the sources said.

Notes: Another leading program host and a director Suparb Klikhachai is likely to stay within the news management. SCB and the Crown Property Bureau own 40% of Siam Infotainment. The bank has decided to support ITV’s plan to increase its capital by Baht 1.4 billion. ITV is to pay Baht 300 million in concession fees to the government soon. Nation Broadcasting Co. faces an uncertain future.

Computing sales to get big boost from three IT fairs in July

The computing industry will get a big boost, as there will be 3 IT sales and exhibition shows in July alone. Local PC makers/distributors will particularly benefit from the fairs, as sales have risen since earlier this year. Such IT fairs next month, and one or two more later this year, could double sales of personal computer and peripherals in 1999.

The second IT Fair, which was held between July 1-4 at Bangkok Convention Center of Central Lad Prow, drew as many as 100,000 visitors to more than 150 sales booths from over 80 producers/distributors/suppliers. Another IT exhibition, IT Job Fair, has been planned there later this month, aiming to attract both IT-job seekers and home users who are looking for new PCs and other computing software.

Notes: Leading suppliers/distributors plan hard-sell campaigns for products. Acer computer to introduce the multimedia Acer Entra 3000, at Baht19,900 a set in the 2nd IT Fair. Makers planned to make debut for PCs with Pentium III 500 MHz processors.

Dairy Queen to open up 25 more outlets by the end of the year

Dairy Queen, the fast-food and ice-cream chain of restaurants, said it has opened up 16 branches since early this year, adding to 58 branches nationwide, and plans to have 25 more to the end of the year. Minor DQ Co, of Minor fast-food restaurant group, said Baht 40 million has been prepared to support new branches, excluding a number of outlets in gas stations.

According to Minor DQ operations manager Miss Suwannee Chansrikesorn, a new Dairy Queen branch in a 15-square meter area would cost about Baht 1.5 million in start-up investment. The company has been in advance negotiations with Jet and Mobil service stations with a plan to set up join vending companies to manage Dairy Queen outlets in respective stations.

Dairy Queen has been the latest to enter into the fast-food restaurant segment, and the expansion plan is getting full back up from its US parent company. The chain earned Baht 130 million 1998, while sales are expected to increase more than 2 fold to Baht 264 million this year.

Pizza Hut will also open up 10 more branches by the end of 1999, adding to their existing 116 restaurants.

Lotus SmartSuite to hit market on PCs

Lotus Development Corp said its famous SmartSuite office software will be installed on every set of Laser computer by Computech Microsystem Co, to be an option for users who seek to avoid expensive office programs like Microsoft’s Office. Negotiations have been under way with other PC makers, which include Acer Computer and IBM (Thailand), for similar campaigns.

The software, Lotus SmartSuite Millennium Edition, Thai version, has been well accepted by users since it was introduced 2 months ago. 30,000 sets with licenses have been sold since, said Miss Pavasuthi Sriviroj, marketing manager of Lotus Development. A typical set of SmartSuite costs Baht 2,000 while a full package would cost a user Baht 6,000. An Office set by Microsoft costs Baht 2,000.

Notes: Government agencies have been encouraged to turn to SmartSuite. Lotus Development offers special prices to organizational customers. Microsoft (Thailand), in an apparent counter-attack, offers 40% to 60% price cuts on its Office package and others to government agencies.

BSA urges closure of Thai-owned Web site

Business Software Alliance said it is to discuss with Thai authorities the closure of a web site owned by a Thai group after finding that the site has offered down-loads of unlicensed software on the Internet - a trade which violates intellectual property protection laws. The pirate web site has more than 1 million sets of computer software on sale, said BSA vice-chairman Hughy Tan.

BSA is to discuss the matter with the Internet service provider that hosts the site while planning legal action against the site operators, he said. BSA has led a Web search campaign worldwide, inspecting software violations; several sites like the Thai-owned one have been forced to close, he said.

Authorities have been told that the site has damaged the good image of Thailand. BSA recently filed damage and criminal suits against a Brit who imported over 500 sets of unlicensed software for computers from Thailand to England. Unlicensed software found on almost every new PC made by vendors.

Kuwait Petroleum to increase operation Thailand

The Kuwaiti oil company, Kuwait Petroleum International, is firm in its operation in Thailand and will soon start a convenience store business at its Q8 service stations in Bangkok. Responding to reports that the Kuwaiti oil firm is to withdraw from the Kingdom, managing director of Kuwait Petroleum (Thailand) said the company does not have such a plan to withdraw - but to expand.

According to Kuwait Petroleum, nearly 20 more Q8 refill stations have been opened during in the economic crisis over the past 12 months, making a total of 130 stations in Thailand. Existing Q8 Shop will be changed to Everyday Shop, while more new outlets will be opened, aiming to serve customers 24 hours a day, said Mr. Gerrit Ruitinka of Kuwait Petroleum (Thailand).

Slumps in the domestic oil market made Kuwait Petroleum withhold investment plans in Thailand this year, after about Baht 8 billion had been spent over the past 8 years. The company is confident that the Thai economy is turning up.

TFB president to leave for Singapore and Hong Kong road shows

Banthoon Lamsam, president of Thai Farmers Bank, has planned to leave for Singapore and Hong Kong early this month to meet with investors and shareholders there. Banthoon, who just returned from another road show to New York, is trying to convince international investors of the positive trend in TFB performance, in the country’s worst ever economic crisis.

According to TFB sources, Bantoon will explain to shareholders the bank’s performance and how the bonus packages for employees have been arranged. TFB last month gave out the long-delayed bonus package worth one month of salaries plus Baht 8,000. TFB union had threatened the bank with lawsuits if the management failed to arrange the bonus package this year.

US investors reportedly confident in Thai recovery. TFB plans more capital raising campaigns to support its asset management unit, which is to be established to manage non-performing loans. The new fund raising campaign will not affect its share holders.

Tycoon moves to guard whisky kingdom

The Suramaharas and Surathip groups have bought pieces of land surrounding distilleries in the provinces, a move translated by sources as a preventive action to guarantee a future for the whisky industry after the end of the year when concession agreements expire and all the distilling plants under control are handed over to the department of excise.

Suramaharas and Surathip, which are owned by Charoen Siriwatanabhakdi, and which have monopolized the domestic whisky business for more than ten years, have also applied for distilling licenses in advance from local agencies in Khon Kaen, Nakornsawan, Surat Thani and Prachinburi. In case bids to continue control over the old distilling plants fail, the two groups can easily set up new plants to compete, said sources.

The land purchased will block expansion by new investors. The two groups have reportedly prepared more than Baht 1 billion for the new Khon Kaen and Prachinburi plants. Surathip has bought a 100-rai plot of land in Nakorn Sawan’s Banpot Pisai district, where a distilling plant is now in operation.

New packages planned to boost Thai-Russian tourism

A group of travel agencies, in cooperation with Thai Airways International, will launch economy tour packages later this year to promote outbound tours from Thailand to Russia. A similar cooperation agreement will be made with Russia’s Aeroflot Airlines to woo Russian and Czech tourists to the Kingdom.

According to Charin Nukornnawarat, chairman of the Global Group, which operates tours between Thailand and Eastern Europe, THAI will bring down air fares by 20% to between Baht 15,000 to 16,000, to make it easier for average Thais to visit Russia and other Eastern European destinations.

The Global Delight Tour campaign is expected to double Thai tourists to Russia to 1,000 this year, from about 500 in 1998.

The group will apply for license in August to establish a new air cargo service to link Bangkok with neighboring countries.

Copyright 1998 Pattaya Mail Publishing Co.Ltd.
370/7-8 Pattaya Second Road, Pattaya City, Chonburi 20260, Thailand 
Tel.66-38 411 240-1, 413 240-1, Fax:66-38 427 596; e-mail: [email protected]
Updated by Chinnaporn Sangwanlek.