SET-listed Delta Electronics Thailand, a maker and distributor of power management solutions and electronics components, expects to sign merger and acquisition (M&A) deals with two aerospace parts firms from Germany, for which it will allocate US$300 million (9.6 billion baht).
Executive director Anusorn Muttaraid said the company is in talks with the German parts suppliers, which serve some of the world's largest aerospace companies, including Airbus and Boeing.
Delta expects all the deals to be completed in the second quarter.
"We are interested in the aerospace and aviation industries because of their potential growth on a global level," Mr Anusorn said. "Aerospace parts, automotive technologies and innovations are in an upcycle trend for electric vehicles, which Delta has already invested in."
Mr Anusorn said the M&A deals will not be financially burdensome, as Delta's cash flow totals 17 billion baht.
In addition, Delta sets aside 1 billion baht annually for expansion and maintenance, both at home and abroad.
After completion, aerospace and aviation will constitute a new business unit for the firm. Delta currently has three units: power electronics, automation and infrastructure.
The firm has invested 500-800 million baht in automation systems and robotics in Thailand, in line with the government's policy of upgrading S-curve industries and driving the Thailand 4.0 initiative.
"We are investing in robotics to support our plants in Samut Prakan and Chachoengsao, for which we will manufacture commercial goods to be sold at home and abroad," Mr Anusorn said. "A big data centre will also provide opportunities for the country's industrial sector. Delta plans to produce and supply related equipment for our customers."
Founded in 1988, Delta operates in four regions -- Asia, Oceania, Europe and North America -- through 31 subsidiaries.
The company's planned electronics plant in Bengaluru, India will be delayed over a land expropriation crisis, with the Indian government unable to provide Delta with a plot.
"Despite putting off the plant's construction since the fourth quarter of last year, we still have a positive outlook and do not believe it will effect our overall business," Mr Anusorn said.
Delta expects 2018 revenue growth of 10% to 50 billion baht, thanks to demand growth for products globally, especially in Asean and India.
Last year, the company posted revenue of 49.3 billion baht, up 5.1%, though net profit fell by 10.6% to 4.9 billion baht.
DELTA shares closed yesterday on the Stock Exchange of Thailand at 66.80 baht, up 1.50 baht, in trade worth 142 million baht.
