Pioneers Look Back at Hemaraj’s First 20 Years

In 1988, when Hemaraj Land And Development Plc. decided to establish Thailand’s first privately-owned industrial estate in Bo-Win, Si Racha, the Eastern Seaboard was a very different place.

While the country had committed to develop the Eastern Seaboard to support industrial development, by the time Hemaraj’s first industrial estates opened for business, the government’s infrastructure projects were far from complete.

One of the forerunners at Eastern Seaboard Industrial Estate was TRW, and former managing director George Strampp reflects on those days. “In the early days, it didn’t matter if you were TRW, AAT, Dana, General Seating or Arvin Meritor, nor whether you were managing director or a clerk, we all mucked together, sharing water, coffee, sandwiches, and a tow out of the mud as there were no paved roads. No phones, and mobiles didn’t work unless you drove back to Highway 331, so we would all make calls for the other guys when we went into town to pick up drinking water or food. We were all pilgrims then … it really brought us all together.

“Now, all company MDs have it too easy. An air-conditioned car takes them to the front door of their company, where a secretary is waiting with coffee, a glass of water, a cold towel and a list of messages that came in over the high-speed broadband internet connection and that he returns via video conference. He has no idea what it was like to be a pioneer.”

As Mr. Strampp colorfully illustrates, the infrastructure on the Eastern Seaboard has significantly improved over the past 10-15 years and to supplement the government’s efforts, Hemaraj implemented a clustering policy and worked with forerunners to provide the right solutions.

The benefits of industrial clustering go beyond environmental standards; clustering also creates efficiencies in terms of utilities and logistics. For example, water and electricity management is much more efficient with hundreds of companies on the grid at one location, rather than scattered across the region. Similarly, with Natural gas, clustering increases efficiency and lowers costs as PTT can pipe in Natural gas to Hemaraj Eastern Industrial Estate and serve the entire petrochemical cluster located there.

Furthermore, when you have 120 automotive customers in the automotive cluster at Eastern Seaboard Industrial Estate (Rayong), it supports suppliers’ ability to match deliveries, and logistics suppliers can serve multiple OEMs, thus increasing efficiency and lowering logistics costs.

Mr. Suchai Asvathavornvanich, Deputy Managing Director of Siam Mitsui PTA observed, “Hemaraj’s management worked with us to develop waste and wastewater disposal systems that would meet our needs as we expanded. We have since expanded twice and have seen constant improvement, especially in the variety of services offered. We are very pleased with management’s proactive approach to improving the estate.”

These sentiments were echoed by Mr. Payoongsak Chartsutipol of Siam United Steel, which has been a Hemaraj customer for more than a decade. “As one of the first customers in Hemaraj Eastern Industrial Estate, we have seen constant growth and the estate is now full. This does not come as a surprise, for Hemaraj-EIE has the right facilities in place and works hard to ensure the entire facility is well-maintained, which makes a great first impression.

“When there have been problems, we were very satisfied with management’s response. Hemaraj’s management is very good … they want to work with customers to constantly improve.”

Mr. Payoongsak’s comments, indeed, reflect Hemaraj’s management philosophy; they want to proactively manage the industrial estate property and private utilities 24x7x365, so that customers can optimize their efforts in manufacturing.

Another aspect of Hemaraj’s management philosophy that investors appreciate is the company’s willingness to help them resolve issues related to government policies and procedures. The voices of industrial investors are much more powerful when they join together and present a unified stance to government organizations. Over the years, Hemaraj has repeatedly worked with investors and the government to improve the environment and cooperation for the industrial sector on the Eastern Seaboard.

Listening and responding to customers is one of the secrets of Hemaraj’s success. As Mr. Ryutari Abe, president of JTEKT AUTOMOTIVE (Thailand), notes, “Over the years, Hemaraj has always been serious about communicating with investors. We have had good response when we needed negotiations with the government as well as infrastructure such as steady power supply and water treatment.”

By focusing on issues that matter most to investors and ensuring that it continues to offer industrial solutions that meet the needs of its customers, Hemaraj has been able to stay a step ahead. As it enters its third decade, investors can be confident that Hemaraj will continue to improve its facilities and collaborate with investors and the government to enhance the overall investment climate in Thailand.