BT Wealth Industries PCL (SET:BTW) Focuses on the Basics

BANGKOK, Oct 21, 2016 - (ACN Newswire) - BT Wealth Industries PCL ("BTW", SET: BTW) Chief Executive Officer, Mr. Chotic Russamitinakornkul discusses the company's strategy and outlook in The Executive Talk (TET) by ShareInvestor.com.TET: Please explain the history of BTW.BTW: We started in 1987 when the first offshore gas pipeline in Thailand was being installed by Unocal, which led to us beginning in the piping industry. As the oil and gas and petroleum industry in Thailand continued to develop in the 1980s and 1990s, the opportunity for BTW to expand into fabrication materialised and finally in the late 2000s modularization became a new industry for us to expand into utilising all the skillsets that BTW has developed in the past three decades. TET: What is BTW's business model?BTW: BTW has three major groups of businesses: modularization, parts fabrication and other services. Our customers are mainly EPC contractors for large-scale engineering projects and project owners in the mining, gas, petroleum and energy industries located in Australia, Asia and South America. Modularization is a production method used for large scale projects and it begins with the preliminary design, engineer, drawing, project planning and finally the fabrication process. This type of production requires high-level engineering standards, as it includes structural works, piping systems, electrical system, safety and tolerance under intensive high pressure conditions and extreme high or low temperature conditions. We are one of the leading providers in the country for piping works and are trusted by the Electricity Generating Authority of Thailand (EGAT) to continuously provide the piping system services for almost all of their power plant projects. As a result of our track record of quality and timeliness, we currently have a backlog of 1.6 billion baht. TET: Where are your facilities located?BTW: We have two facilities which are the Sattahip Workshops and Chachoengsao Workshop. At Sattahip we have 174,454 sqm, and at Chachoengsao Workshop 89,716 sqm, in total we have a total capacity of up to 4,000 tonnes per month. Our main facility at Sattahip is adjacent to the Sattahip commercial deep-sea port. This ensures that we can produce and deliver the module units through the deep-sea port thereby reducing transportation costs when compared to other steel fabricators, and there is no restriction from the road width, which gives us a strong competitive advantage over our peers in Thailand. TET: Why did BTW decide to list on the Stock Exchange of Thailand?BTW: We listed on the SET because we wanted to ensure that we can continue to enhance the value for all of our stakeholders. Because we are listed, we now have the ability to bid for larger projects up to USD 400-500 million contracts from the USD 200 million which was the largest we have done in the past, because our capital base is larger and our credibility as a firm has improved as the financial strength of BTW is more visible to potential customers. In addition to this, we wanted to expand and invest in debottlenecking our manufacturing process to ensure that our efficiency rates are higher and that the schedule is shorter which is positive for our customers. Finally, financially we have been able to decrease our cost of funding substantially and these cost savings can be used to further improve our facilities and team further. TET: What differentiates BTW from its competitors?BTW: The combination of our skillset and location differentiate us from our competitors. Over the past three decades, we have developed a very strong engineering and manufacturing team for this industry, which allows us to meet the necessary technical requirements of our existing and potential customers. Location wise, we benefit from having our facility next to the Sattahip port, as it reduces costs for our customers, as all of the work to complete a project can be done within one location and finally by being located in Thailand, the labour costs are more cost-effective. TET: What are the biggest risks facing your business?BTW: The industry that we operate in is back to basics when compared to an industry such as electronics or IT. In IT there is potential for high growth, high margins, but high risks of becoming obsolete in a relatively short time frame. But people and companies still need power, manufacturing, and thus construction and steel fabrication to build these facilities and utilizes and this is where we operate. Technology in the form of robotics or materials may have an impact in the long term and potentially we may see plastics replacing several components in cars but we do not see this nor 3D printing nor materials replacing steel in structures because there is a need for weight to stabilise a structure to withstand nature, so it's back to basics. TET: Where do you see BTW in five years from now?BTW: We are a very dynamic organisation and we aim to explore new areas whether it be renewables or other industries within the next five years. Our current business is volatile in nature because it is project based and we would like to potentially expand into an industry that has recurring income. We still see that Thailand is one of the best locations in the region due to its utilities, infrastructure for air, roads and sea so we still see the opportunity here. -The Executive Talk is presented by ShareInvestor, Asia's leading financial internet media and technology company, the largest investor relations network in the region. -For more information, email [email protected].-Please visit www.ShareInvestorThailand.com.Copyright 2016 ACN Newswire . All rights reserved.

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