Caterpillar’s Presence in Thailand
Caterpillar Inc. is a world renowned brand and leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar is an industry leader, ranked number 49 on Fortune’s 500 list for 2014, with sales and revenues of $55.184 billion USD for 2014.
The company established its presence in Thailand more than 30 years ago, to provide technical expertise and product knowledge to authorized Caterpillar dealer, Metro Machinery Company Limited. Caterpillar (Thailand) Limited was later incorporated in 1998 and has expanded its footprint beyond providing its specialized product knowledge to other functions, including manufacturing. To date, Caterpillar (Thailand) Limited has over 850 employees across its main office in Bangkok, two manufacturing facilities and Caterpillar Leasing (Thailand) Limited.
In 2011, the company invested $300 million USD in the construction of two manufacturing facilities in the Rayong Province, to serve the rising demand within the Asia Pacific region. The first plant produces underground mining equipment and the second facility manufactures medium track-type tractors. Both facilities are operational and more than 95 percent of products produced are for export within Southeast Asia, the Middle East, South Africa, Latin American and North America.
Thailand, a Gateway to ASEAN
Thailand’s central role and membership within ASEAN provides strategic access to the fast-growing member economies and allow for greater growth opportunities. With the inauguration of the ASEAN Economic Community (AEC) by the end of 2015, the initiative will promote growth and establish economic integration in the region. Caterpillar recognizes Thailand’s strategic role as a gateway connecting emerging ASEAN markets, and an opportunity to further promote regional and global business integration.
“We recognize that the current direction of the government’s policy to invest more in upgrading the country’s infrastructure and logistics system, will position Thailand as a gateway connecting ASEAN markets. Caterpillar chose to invest in Thailand as it foresaw long-term competitiveness in the region. The upcoming ASEAN economic integration will promote the growth of the company along with that of the region’s economy.”
- Philip L. Pennington, Asia General Manager of Hard Rock Vehicles - Resource Industries, Caterpillar Inc.
and Thailand Country Manager
Caterpillar anticipated the long-term advantages of investing in the country and capitalized on expanding its operations in Thailand. The country’s location at the heart of Southeast Asia serves as a gateway for companies, like Caterpillar, looking to invest in the Association of Southeast Asian Nations (ASEAN) region, offering strong infrastructure and a skilled workforce. Other factors that led Caterpillar to invest in Thailand include the country’s strategic location; it is a regional hub within the ASEAN region, which allows for easy access to Asia’s four billion consumers via integrated land routes and a number of deep sea ports. Furthermore, the country’s robust supply chain network is crucial to the company’s operations. Caterpillar is committed to working with strategic supply chain partners and educational institutions to further develop their capacity and advance their skill set to support the manufacturing industry.
Caterpillar’s Employees Lend a Helping Hand
Caterpillar’s core value of sustainability is an integral part of the company’s DNA, and is reflected in its ethical commitment to solving global challenges related to energy, water, land, climate and quality of life. The company is committed to upholding this principle and its role as a leader in the realm of corporate social responsibility (CSR). Caterpillar has successfully managed a number of CSR programs in Thailand and partnered with local non-profit organizations on a number of initiatives.
Since establishing a relationship with Habitat for Humanity in Thailand in 2013, hundreds of Caterpillar employees have volunteered to build homes for low-income families in the Rayong Province. Another significant example is Caterpillar’s partnership with the Raksthai Foundation to develop environmental awareness and protection programs among primary schools in the Rayong Province. These two initiatives highlight the company’s commitment to sustainability among communities where Caterpillar operates.
Looking Ahead
As Caterpillar continues to grow its presence in Thailand, it is optimistic about operating in the region. The company continues to be a strategic player in the country’s manufacturing market, contributing to the industry as a whole and through successful local community outreach.
The Thailand Board of Investment (BOI) remains a strategic partner for foreign investors, case in point with Caterpillar.
“Caterpillar appreciates the assistance BOI has provided to help us become more competitive in the global marketplace and meet our business needs. BOI’s support has allowed Caterpillar to successfully develop its manufacturing presence in Thailand and contribute to the country’s growing manufacturing presence.”
- Philip L. Pennington, Asia General Manager of Hard Rock Vehicles - Resource Industries, Caterpillar Inc.
and Thailand Country Manager |
