Delta Electronics (Thailand), the leading electronics company in the country based on market capitalisation, is gearing up to invest an amount ranging from US$500 million to $1 billion to enhance its manufacturing and R&D capabilities over the next five years, with a significant portion earmarked for Thailand, as stated by CEO Victor Cheng.
In a conversation with Mr Cheng he indicated that more than $500 million in capital expenditure would be directed towards Thailand, India, and Germany. Plans include setting up new factories in Thailand and Krishnagiri, India, while also expanding an existing R&D center in Soest, Germany, over a span of three to five years.
Currently, Delta operates six factories at Thailand’s Wellgrow and Bangpoo industrial estates, with two additional facilities set to begin operations by 2026. The company reported capital expenditure figures of nearly $200 million in 2022 and $345 million in 2023, with a global workforce of 21,000 employees.
The investment focus will be on products related to electric vehicles (EVs), power supply, engineered solutions, and various systems for business applications, according to Mr Cheng, who assumed leadership at Delta Electronics (Thailand) on January 1, 2024.
While the overall electronics sector on the Stock Exchange of Thailand has experienced a sluggish start to the year amid market volatility, Mr Cheng emphasized that Delta remains a solid investment choice due to its strong financial performance and resilience.
Despite the challenges, there are promising opportunities within specific segments of the electronics industry, particularly in the e-mobility sector, where Delta is well-positioned to benefit from the trend.
For the current year, Delta anticipates a revenue growth of 15-20% compared to 2023, a year in which the company achieved record turnover of $4.1 billion.
Noteworthy achievements in 2023 included a revenue surge of 23% and a record net profit of $524 million, driven by revenue growth, efficient expense management, and exceptional non-operating gains.
Mr Cheng highlighted that Delta is optimistic about continued demand for critical infrastructure, with growth prospects in Southeast Asia and Australia particularly strong for the company’s energy infrastructure and industrial automation solutions divisions.
Anticipating an uptick in growth for key economies this year, Mr Cheng pointed out positive indicators such as enhanced business sentiment, increased consumer spending, elevated trade activities, accommodative monetary policies, and fiscal stimuli supporting economic bounce-back.
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