CCS Group, a manufacturer of various machines used in metalworking industries, is calling for the government to ease rules and regulations for component suppliers in the aviation industry, in particular those with 50% local content.
With the government's goal to promote the aviation industry as part of the new S-curve policy, an initial development stage should encourage aircraft assemblers and engine makers to use at least 50% locally made components, said the group.
That means many Thai manufacturers in this industry are tier-two and tier-three suppliers, said CCS.
Kriangkrai Manoburachailert, managing director of CCS, said once many global aircraft makers and tier-one parts makers buy local components, the aviation industry can expand in the near future as the government expects.
"There are no regulations on local content, so we are calling for the government to promote the aerospace and aviation industries in Thailand," said Mr Kriangkrai.
"The government is moving in the right direction, but this policy offers many benefits for foreign companies and tier-one makers, while local companies have yet to receive any privileges from the government's policy."
He said the aerospace and aviation industries are parts of the S-curve policy that is being promoted in the government's Eastern Economic Corridor (EEC) scheme.
"Once the government can ease regulations for local companies, the aviation sector will increase the country's competitiveness in both EEC locations and other provinces," said Mr Kriangkrai. "More importantly, Thailand will become a hub in Southeast Asia for this industry."
CCS is the first local company to produce metalworking machines for computer numeric-control turning and machining, metal stamping, plastic moulding, mould and die, jigs and fixtures, and cutting tool manufacturing.
Established in 1989, the group supplies aircraft parts to many large companies such as Boeing and Airbus.
Ketan Pole, chief executive of CCS, said the country's aviation industry is growing rapidly because the global aviation movement is shifting more to Asia-Pacific.
"This has reflected a steady growth of total air traffic in the region, including Thailand, in the past several years," said Mr Pole.
He said the airline business in Thailand is continuing to prosper as the number of tourists increases every year.
The expansion of Thai airlines is mainly driven by rising demand for low-cost carriers, said Mr Pole.
The market penetration of low-cost airlines contributes 30% of the total market.
The Transport Ministry reported Thailand's maintenance, repair and overhaul market from 2015-24 is expected to reach amount US$10.6 billion (331 billion baht), with Thailand becoming a hub for Southeast Asia.
Mr Pole said CCS plans to expand investment after seeing many aircraft makers enter the EEC.
"We are constructing a second plant and installing new machinery and equipment in Nonthaburi with a budget of 64 million baht this year," he said.
Last year, CCS posted revenue of 1.6 billion baht.
According to the Board of Investment, investment applications for aviation accumulated 12.4 billion baht, covering manufacture and repair of all related aircraft and components.
