Company News
Hemaraj Projects 30% Growth in 2011
25/01/2011
With contribution from industrial land sales, industrial utilities and new property launches in 2011.
[January 25, 2011] – Hemaraj Land And Development Plc, a leader in the development of industrial estates, utilities and property solutions in Thailand, today announced key 2010 accomplishments as well as 2011 corporate goals and business outlook.
“2010 has been a significant year of transition for Hemaraj as we broadened our core business to offer complete world class industrial and property solutions,” said David Nardone, President & CEO of Hemaraj Land And Development Plc. “We believe we are well positioned to work on our business plan and to achieve our goals, both operationally and financially.”
2010 Operation results reflect significant growth in industrial land sales and utilities. For 2010 land sales rebounded to 930 rai from 144 in 2009, with 41 contracts, 19 new customers and 22 project expansion from existing customers. The 100 % acquisition of Hemaraj Saraburi Industrial Land and Hemaraj Rayong Industrial Land in Q4 of 2010 added 2,771 rai of sellable land to the company’s industrial estates and places Hemaraj with a total combined area of 31,350 rai in 6 industrial estates.
Hemaraj Rayong Industrial Land is increasingly attractive with its location half way between the auto cluster and petrochemical cluster on the eastern seaboard with proximity to Laemchabang Deep Sea Port and readily available labor. As for Hemaraj Saraburi Industrial Land, the location is just an hour away from Bangkok and can be a good expansion to the northern side of Bangkok for logistics and electronics industries, with additional labor supply from Saraburi province.
“We expect a 30% industrial land growth for Hemaraj in 2011 with industrial estate land sale of 1,200 rai, thanks to the positive economic outlook of the country driven by both domestic demand and export growth. In addition, the achievement being no. 13 globally for automotive industry positions Thailand as the largest car export base in SEA,” said Nardone.
“The 2011 investment policy of Hemaraj will remain focused on three core business areas - industrial estate, utilities and properties. For industrial estate development we plan to add 50 new contracts this year with 50% repeat customers. Capitalizing on ASEAN free trade agreement we expect to attract more investors from Japan, China, Australia and India. Rental space of ready-built factory is expected to grow by 40% in 2011 with the introduction of new product – larger and expandable factory - in the pipe line. 2011 will also see significant improvement in revenue from industrial land sales and factory rental resulted from the acquisition of Hemaraj SIL and Hemaraj RIL. As for utilities, Gheco One IPP project will be on stream in early 2012. On the property side, the company is studying to launch new property projects in 2011 in Bangkok and Eastern Seaboard.”, added Nardone.
Executive Vice President, Vivat Jiratikarnsakul said: "We are extremely happy with 2010 industrial land sales results as we have received a very positive response from our clients. To date, local clients stand for 21% while major international customers include active investors from Japan (33%), Europe (13%), USA (11%), Australia (5%) and Taiwan (4%). Investors from China, Singapore, Korea, Malaysia and India are showing keen interest to invest. We have met our goals for 2010 and 2011 is shaping up to be an even better year.”
The company currently operates six industrial estates with a combined area of 31,350 rai (12,540 acres), locating 426 distinct new customers, 148 automotive customers and 643 contracts to date with estimate of over USD20 billion of investment. By industry clusters, automotive accounts for 35% of the total IE space managed by Hemaraj, followed by consumer products (15%), chemical/petrochemical (12%), steel/metal (9%), building materials (8%), electronics (7%), logistics (3%) and others (11%).
A new strategic customer, Caterpillar Underground Mining Pty Ltd, an Australian subsidiary of Caterpillar USA - the world’s leading manufacturer of construction and mining equipment and a Fortune 500 company, signed in January 2011, a contract with Hemaraj to purchase 140 rai of land at Hemaraj Rayong Industrial Land in Rayong Province for Caterpillar’s first manufacturing facility in Thailand. Occupying a total area of 60,000 square meters, the factory is scheduled to be fully operational in late 2012 and will increase Caterpillar’s capacity for its existing range of underground mining machinery to meet long-term customer demand in emerging markets.
Vice President, Sunthorn Kongsunthornkitkul said: “Apart from operational and financial excellence, Hemaraj is also committed to environment, education and well-being of people in areas we do our business. In environment, Hemaraj has been and will continue to pursue our Eco-Industrial Town project at Eastern Seaboard Industrial Estate in cooperation with the Industrial Authority of Thailand (IEAT). Another on-going effort, Hemaraj’s Environmental Monitoring and Control Center, which is the first real-time monitoring unit in a private sector industrial estate established in 2010, is doing well in safeguarding the environment and has been warmly welcomed by communities and the public. On Education side, apart from Annual School Contribution and Scholarship programs, the 2011 “Adopt-A-School - Train the Trainer” workshop and exhibition will continue to support and enhance capabilities of teachers from schools around Hemaraj’s industrial estates in Rayong and Chonburi to impart more sustainable education to students, while the Art Camp project will cover students in 16 schools and an addition of teacher training this year. The skill trainings for housewives initiated last year will be expanded to cover vocational training for local communities. Other on-going programs include free mobile medical unit, tree planting, youth and sports support program”.
[January 25, 2011] – Hemaraj Land And Development Plc, a leader in the development of industrial estates, utilities and property solutions in Thailand, today announced key 2010 accomplishments as well as 2011 corporate goals and business outlook.
“2010 has been a significant year of transition for Hemaraj as we broadened our core business to offer complete world class industrial and property solutions,” said David Nardone, President & CEO of Hemaraj Land And Development Plc. “We believe we are well positioned to work on our business plan and to achieve our goals, both operationally and financially.”
2010 Operation results reflect significant growth in industrial land sales and utilities. For 2010 land sales rebounded to 930 rai from 144 in 2009, with 41 contracts, 19 new customers and 22 project expansion from existing customers. The 100 % acquisition of Hemaraj Saraburi Industrial Land and Hemaraj Rayong Industrial Land in Q4 of 2010 added 2,771 rai of sellable land to the company’s industrial estates and places Hemaraj with a total combined area of 31,350 rai in 6 industrial estates.
Hemaraj Rayong Industrial Land is increasingly attractive with its location half way between the auto cluster and petrochemical cluster on the eastern seaboard with proximity to Laemchabang Deep Sea Port and readily available labor. As for Hemaraj Saraburi Industrial Land, the location is just an hour away from Bangkok and can be a good expansion to the northern side of Bangkok for logistics and electronics industries, with additional labor supply from Saraburi province.
“We expect a 30% industrial land growth for Hemaraj in 2011 with industrial estate land sale of 1,200 rai, thanks to the positive economic outlook of the country driven by both domestic demand and export growth. In addition, the achievement being no. 13 globally for automotive industry positions Thailand as the largest car export base in SEA,” said Nardone.
“The 2011 investment policy of Hemaraj will remain focused on three core business areas - industrial estate, utilities and properties. For industrial estate development we plan to add 50 new contracts this year with 50% repeat customers. Capitalizing on ASEAN free trade agreement we expect to attract more investors from Japan, China, Australia and India. Rental space of ready-built factory is expected to grow by 40% in 2011 with the introduction of new product – larger and expandable factory - in the pipe line. 2011 will also see significant improvement in revenue from industrial land sales and factory rental resulted from the acquisition of Hemaraj SIL and Hemaraj RIL. As for utilities, Gheco One IPP project will be on stream in early 2012. On the property side, the company is studying to launch new property projects in 2011 in Bangkok and Eastern Seaboard.”, added Nardone.
Executive Vice President, Vivat Jiratikarnsakul said: "We are extremely happy with 2010 industrial land sales results as we have received a very positive response from our clients. To date, local clients stand for 21% while major international customers include active investors from Japan (33%), Europe (13%), USA (11%), Australia (5%) and Taiwan (4%). Investors from China, Singapore, Korea, Malaysia and India are showing keen interest to invest. We have met our goals for 2010 and 2011 is shaping up to be an even better year.”
The company currently operates six industrial estates with a combined area of 31,350 rai (12,540 acres), locating 426 distinct new customers, 148 automotive customers and 643 contracts to date with estimate of over USD20 billion of investment. By industry clusters, automotive accounts for 35% of the total IE space managed by Hemaraj, followed by consumer products (15%), chemical/petrochemical (12%), steel/metal (9%), building materials (8%), electronics (7%), logistics (3%) and others (11%).
A new strategic customer, Caterpillar Underground Mining Pty Ltd, an Australian subsidiary of Caterpillar USA - the world’s leading manufacturer of construction and mining equipment and a Fortune 500 company, signed in January 2011, a contract with Hemaraj to purchase 140 rai of land at Hemaraj Rayong Industrial Land in Rayong Province for Caterpillar’s first manufacturing facility in Thailand. Occupying a total area of 60,000 square meters, the factory is scheduled to be fully operational in late 2012 and will increase Caterpillar’s capacity for its existing range of underground mining machinery to meet long-term customer demand in emerging markets.
Vice President, Sunthorn Kongsunthornkitkul said: “Apart from operational and financial excellence, Hemaraj is also committed to environment, education and well-being of people in areas we do our business. In environment, Hemaraj has been and will continue to pursue our Eco-Industrial Town project at Eastern Seaboard Industrial Estate in cooperation with the Industrial Authority of Thailand (IEAT). Another on-going effort, Hemaraj’s Environmental Monitoring and Control Center, which is the first real-time monitoring unit in a private sector industrial estate established in 2010, is doing well in safeguarding the environment and has been warmly welcomed by communities and the public. On Education side, apart from Annual School Contribution and Scholarship programs, the 2011 “Adopt-A-School - Train the Trainer” workshop and exhibition will continue to support and enhance capabilities of teachers from schools around Hemaraj’s industrial estates in Rayong and Chonburi to impart more sustainable education to students, while the Art Camp project will cover students in 16 schools and an addition of teacher training this year. The skill trainings for housewives initiated last year will be expanded to cover vocational training for local communities. Other on-going programs include free mobile medical unit, tree planting, youth and sports support program”.