5 minute read
Building and construction industry in Thailand is recovering
Sravut Rujipornpong
Bilfinger (Thai)ConstructionCo.,Ltd. isa leading constructionservice providerfor international clients in the gas and oil sector, processing industries, logistic buildings and general contracting for green field and brown field projects. The company’s mission is to solve challenging tasks with know-how, commitment to their client’s needs, commitment to reliability, efficiency as well as continuous improvement in performance, profitability and growth, and commitment to the well-being of people and the environment.
UPDATE recently interviewed Mr. Sravut Rujipornpong, Managing Director of Bilfinger (Thai) Construction Co., Ltd., to find out more about the company’s commitment to the environment, in terms of sustainability and the green building trend. Mr. Sravut Rujipornpong has a long history and extensive experience in working in the construction industry.
Through research we found out that Bilfinger (Thai) Construction Co., Ltd. is operating in various industries. Can you tell us which industry is the most important for you as a company, and why?
The industrial sector is one of the most important sectors for Bilfinger (Thai) Construction Co., Ltd. Our main market segment targets are international clientele, chemical process industries, customers industries, oil and gas refineries, logistic buildings, beauty and personal care, food and beverages, animal food and nutrition, garments and renovation. Those market segment targets are all equally important to Bilfinger (Thai) Construction Co., Ltd.
Can you give us details about one on-going project in your industry focus?
Bilfinger has many ongoing projects that are very large in terms of execution and their importance, but those projects are confidential, and the names cannot be mentioned yet. More than 90 per cent of our clients are international clients.
What is an interesting trend in this industry?
I have seen that the construction industry in Thailand has changed tremendously over the past 30 years. Interestingly, more and more clients are now well aware about good safety practices and opting for higher quality of work.
Moreover, although construction methods and techniques such as prefabricated elements, formwork systems, etc. have been developed recently, the construction remains the same in principle.
To what extent has the sustainability trend beeninfluencingthisindustry?
It will be part of communities everywhere around the world and as well in the construction industry. There are projects which are planned for the next one or two years that will take into consideration the sustainability trend; however sustainability is still not the number one influence in the construction industry. Generally, sustainability is influencing the industry but not in all areas. However, there are a few industries – for example, chemical production – that are influenced by the sustainability trend.
What is the current major challenge in this industry/sector?
One of the challenges that Bilfinger has been facing is prices which, due to the Covid-19 pandemic, have been driven to extremely low levels during the past two or three years. Our competitors are looking urgently for new projects, and to win ventures now they need to drive their prices very low. This makes business difficult. However, I believe that within six months or during the forthcoming year, as soon as the economy and the businesses begin recovering from the challenge of the Covid-19 pandemic, prices will rise again. Currently, though, the situation is very challenging for Bilfinger (Thai) Construction Co., Ltd.
Have you received any investment incentives from the Thai government?
Some of our clients’ major projects that will begin in less than half a year have been receiving investment incentives from the Thailand Board of Investment (BoI). Those investment incentives make up a big part of the client’s financial plan.
Do you think the building and construction industry in Thailand has already started to recover from the pandemic?
I believe that the Thai economy is already picking up and looking better compared to the past two to three years. There are numbers of new industrial project’ inquiries from designers and consultants and direct contact from international clients. Bilfinger (Thai) also has some potential projects with important clients planned for the foreseeable future.
As sustainability has been gaining significance, what measures related to sustainability has Bilfinger (Thai) Construction Co., Ltd been implementing?
Bilfinger Thai always make safety as the first priority in addition to commitment, quality people, efficient practices & controls and cost effective that are key philosophies to drive company to success. These have been proven in Bilfinger Thai’s portfolio that 70 % of the completed projects were repeated clients. In terms of sustainability in construction, design and selection of high quality of materials will definitely enhance building sustainability even though construction methods are maintained.
How do you see the future of the building and construction industry in Thailand with regard to the current global situation?
It is looking better compared to the past 18 months to two years. Currently, business is quite active.
Do you plan to expand your market to neighbouring countries and other members of the Association of Southeast Asian Nations (ASEAN)? If yes, when and how?
No, Bilfinger (Thai) will not expand to other countries. We only focus on Thailand. The reason is that in addition to the uncertainty with neighbouring countries due to political problems as well as regulations are reasons why Bilfinger (Thai) Construction Co, Ltd. will not expand soon. From what I have heard from others in the industry, expansion to neighbouring countries is very challenging from geopolitical uncertainty.
Contact details: Sravut Rujipornpong Managing Director Bilfinger (Thai) Construction Co., Ltd. +66 2 691 9449 info@bilfingerthai.com https://thai.bilfinger.com
