Leadway Heavy Machinery Co, a local importer and distributor of construction equipment, aims to increase revenue in fiscal 2019 (starting in April) by 14% to 2.4 billion baht, counting on infrastructure projects to drive demand.
Chief executive Chakart Seanchan said Leadway expects to increase sales of construction machinery for use in the government's megaprojects, mainly for the flagship Eastern Economic Corridor (EEC) scheme.
"Both the EEC and China's Belt and Road Initiative will boost the construction sector and increase demand for related materials," Mr Chakart said.
To cope with demand spurred by megaprojects in the EEC, Leadway plans to spend 20 billion baht to renovate the office in Chachoengsao and expand with a new branch in Nakhon Ratchasima.
Moreover, Leadway has been appointed as the local distributor of Shandong Pengxiang Automobile Co to import mining dump trucks for the Thai market.
"That means we will have two brands of construction machinery in our portfolio: Sumitomo of Japan and Shandong of China," Mr Chakart said. "Leadway plans to import a new brand from Europe in the construction segment soon to strengthen its competitiveness in the Thai market."
Leadway currently imports excavators, paving equipment and mining dump trucks.
For the new dump trucks, Leadway predicts a 30% rise in terms of market value in 2019, up from 1 billion baht, due to local construction projects.
Mr Chakart said Leadway aims to sell 70 mining dump trucks with a value of 350 million baht in 2019.
"We have several customers who are running mining projects in Myanmar, Thailand and Cambodia," he said. "At home, Leadway will deliver to 15 subcontractors working at the Mae Moh coal mine in Lampang."
Yang Ming Jei, Shandong Pengxiang Automobile's assistant general manager, said the Shandong-based parent firm operates in Indonesia, Thailand, Myanmar, Laos and Malaysia.
"We plan to expand the business presence to other countries in the region, as we forecast a mining dump truck market in Southeast Asia of 3,000-5,000 units," Mr Yang said. "The parent firm plans to control the largest market share in the region by 2025."
