2016 was another eventful year for us with many major projects started to pave the way for the company’s sustainable growth for the industrial 4.0 era. As we look forward to Delta Electronics (Thailand) PCL.’s 27th anniversary in 2017 which is expected to be another exciting year, I would like to re-cap what makes 2016 a challenging but fruitful one.
First of all, to maintain our technology leadership in the industry, we have boosted our research and development capabilities in hardware and software developments with the addition of two new teams in Hangzhou, China, and Bangalore, India. For ODM and hardware businesses, we have been expanding the automotive product range in power supplies and fans to meet the growing demand from the market. This has also enabled us to expand our clientele, especially in Europe and USA. For Regional Business, relentless efforts are continuing in promoting our service and solution (S&S) business in power system to all major utilities providers, starting with India. S&S business will play an important role in improving our regional offices’ profitability in the long term.
Since the beginning of 2016, our production capacity expansion for automotive power and fan products have been progressing rapidly to accommodate increasing demand expected in the next three to five years. For other manufacturing restructuring, two of the most significant investments are in automation to reduce labor costs and improve productivity; and the opening of our plant in Myanmar to reduce the risk of labor supply and future wage hike in Thailand. Nevertheless, Thailand will remain our strategic business location and manufacturing headquarter for the region. As the above efforts go into full operation in 2017, Thailand plants will transition into producing only critical and strategic components and products whereas other labor intensive components and assembly processes will be done in countries with more cost effective labor force. All these undertakings are to ensure a solid foundation for sustainable growth of the company in many years to come while maintaining continuing profitability during this period.
In the age of Internet of Things (IoT) where speed and service quality are paramount to the success of a company, Delta Electronics (Thailand) PCL. had established many new offices in Southeast Asia and India since the beginning of 2016. Apart from providing better and faster services to our customers, the new offices will serve as market intelligence centers especially with regard to IoT development so that we can proactively seize new business opportunities in the region. The management teams had also looked into different aspects to further enhance the functions and quality of services to be provided by existing offices. For example, the Telecom product offices will diversify its business into data center and industrial automation including alternative energy. This is to leverage on their proven excellent sales record and extensive service channels. Significant sales results from their new venture should be apparent either by end of this year or early 2018.
All those activities aforementioned will continue in 2017. Though global economy is still volatile in general, there are still silver linings such as the demonetization in India and USA market. The company still holds on to the cash of 600 million US dollars to safeguard our current business while looking out for other investment opportunities. Our expression of gratitude towards our business partners, staff and stakeholders is through our hard work and dedication to bring this company to the next level. Like in every year over the past two decades, we shall set tough targets for ourselves to continuously enhance this company’s competencies to adapt to the ever changing market and global challenges in return for the trust and support our stakeholders have provided us. Thank you.