SUMINO KOGYO CO., LTD. (SUMINO), a Japanese Hiroshima based MAZDA supplier, is teaming up with AAPICO HITECH PCL (AAPICO) to set up a joint venture to make and sell precision press welding parts of cars for original equipment manufacturers in Thailand.
Thailand has become a key destination for all automotive car manufacturers due to its strong economic environment and availability of skilled labor. More and more different models of cars are manufactured in Thailand and exported globally. Most of the part manufacturers strive to follow the car manufacturers as they expand overseas. MAZDA Motor Corp. (MAZDA) is transplanting one major model of car into its Thailand manufacturing. As the result, SUMINO decided to come and invest in Thailand through a Joint Venture (JV) with AAPICO called SUMINO AAPICO (Thailand) Co., Ltd. with shareholding structure 51% and 49% for SUMINO and AAPICO, respectively.
SUMINO has a long term relationship with Mazda Motor Corp. It can provide expertise in the manufacturing of precision metal stamping parts with high quality and tolerance, while AAPICO can provide sales, marketing, distribution, logistics and management expertise locally to the new JV Company. The total investment is THB 600 Million and the factory is located at Amata Nakorn Industrial Estate. The new JV company will fully operate in the beginning of 2014. Considering that press automotive part is the core business of AAPICO combined with the long history of SUMINO’s expertise, the new joint venture is expected to be a very successful future.
Started with the production of clasps for Tabi or traditional Japanese socks, SUMINO moved into precision metal stamping. SUMINO is currently producing 3,000 different parts mainly for MAZDA, Sumitomo Wiring Systems Ltd., and JTEKT Corporation.
AAPICO Hitech PCL is one of Thailand’s leading automotive jig and die designer and manufacturer as well as OEM parts, having business operations in Thailand, Malaysia and China. It is a first-tier supplier to AAT, Nissan, Toyota, Honda, Isuzu, General Motors and other major auto brands, and its reputation for producing high-quality products is supported by accreditation of both the TS 16949 and ISO 14001. AAPICO Hitech was listed on the Stock Exchange of Thailand in October 2002.
This new joint venture is “another major milestone for AAPICO and signifies the next step in the establishment of a new strategic alliance” said Mr. Yeap Swee Chuan, President and CEO of AAPICO. Likewise, Mr. Takeo Sato, President of SUMINO, added: “we are confident that the joint venture will generate long-term growth for both companies and possibly open up more opportunities for further expansion in Thailand.”
Left to Right:
Mr. Masahiro Sumino (Director, SUMINO KOGYO)
Mr. Takeo Sato (President, SUMINO KOGYO)
Mr. Yeap Swee Chuan (President & CEO, AAPICO HITECH)
Mrs. Teo Lee Ngo (Executive Director, AAPICO HITECH)
SUMINO KOGYO CO., LTD. and AAPICO HITECH PCL signed a joint venture agreement to set up SUMINO AAPICO (Thailand) Co., Ltd. to make precision press welding parts of cars for original equipment manufacturers in Thailand.