The Amata Times
News from the World’s Leading Industrial City Developer
Q4 2016 - Q1 2017

Industry
4.0

Customersin Profile:ThomasChambers

CSR atAmata

Customer
News

Business
CenterSee Page 2

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In Memory of HM
King Bhumibol Adujyadej
The passing of His Majesty the late King Bhumibol Adujyadej, the Ninth King of the Chakri Dynasty, brought thegreatest loss to Thai people and the world. In remembranceof his fortitude and devotion for seven decades, the Industrial Estate Authority of Thailand (IEAT) and AMATA
Group organized a mourning ceremony to express deepest condolences and heartfelt appreciation to His Majesty
the late King. The ceremony included lighting candles inletters and the number “9” with the Royal Anthem sungby hundreds of customers and partners on the 25th of November at Amata Castle in Amata Nakorn Industrial Estatein Chonburi. His Majesty will remain forever in everyone’s
hearts.

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Amata Times			

Q4 2016 - Q1 2017

Industry 4.0 in Southeast Asia
Advanced Robotics and the Future of Manufacturing
With its embrace of the forward-looking “Industry 4.0” concept, all signs point to Asia’s continued
dominance in the world of manufacturing. Skyrocketing investment in integrated robotics across theregion continues to be spurred on by the combination of technological advancement and government incentives in Thailand and beyond.
Robots on the assembly line are not new, but the previous iteration of industry AI was heavy on the‘artificial’ and light on ‘intelligence’, ideal for performing repetitive tasks under highly controlled
conditions. By contrast, Industry 4.0 refers to the use of sophisticated robots and computer systems
capable of performing a wide range of tasks, and responding intelligently when faced with unexpected circumstances.

Industry 1.0

Industry 2.0

Industry 3.0

Industry 4.0

The mechanicalweaving loom,
water andsteam power

First production line

First programmable
logic controller(PLC).

Based on cyber
physical systems(linking real objects
with info. processing/virtual objects &processes via
information networks[e.g. the Internet].

1784

1970

Mass production
using electricalenergyUse of electronics
and IT for further
automation
1969

Today

A modern factory’s intranet may now be run by robots capable of automatically switching between
tasks based on real-time inventory needs, and adjusting parts that are misaligned or have fallen overon the assembly line. The resulting increase in efficiency may tempt future manufacturers to switch
to so-called “dark factories”, where so few people would be needed that most of the day-to-day operations could be left to the machines.
Such speculation drives worries that human workers may be left on the losing side of the equation,and the estimated effects on employment numbers do indeed vary. But there is plenty of reason for
optimism, even among workers themselves, based on the performance surrounding similar technology that has already been introduced elsewhere.
Smart cars are on their way to America, and one demographic that has openly expressed fear for its
livelihood has been that of truck drivers. While self-driving trucks do eliminate the need for humanguidance, this feature works only on highways and main routes. Trucks on city streets and otherzones where traffic is encountered still require human control, meaning that the driver still needs tobe there to take over when necessary. The technology is nevertheless tremendously helpful, because
it obviates the need for truck drivers to be alert and driving for extended periods of time. The new
system results in safer work for drivers, faster delivery over longer distances for companies, and theadded benefit of providing gainful employment to the companies producing the smart car systems
in the first place.
This last benefit should not be overlooked. Even if advanced robotics allows factories to operate withfewer staff, someone still has to design, program, produce, and test the robots themselves. This task islikely to fall to the same regions where other types of production are already in full swing. In 2015,
for example, Thailand had 7,500 employees in the industrial robotics industry. By 2018, according to
the International Federation of Robotics, that figure is expected to double. Over 60 companies inThailand already produce robotics for industry, a number that will surely grow over time.

Annual supply of industrial robots 2014-2015
300,000
250,000
200,000
150,000
100,000
50,000
0

2014

2015

Asia/Australia

2016

Europe2017

America

2018

2019

Source: World Robotics 2015

Ripple effects tend to follow from upgrades of this type. Education generally adapts to industry, andjobs in design, programming and production of robotics will lead to upgrades in the educational
infrastructure across the region, making new engineering graduates more competitive in job markets
worldwide.
Thailand’s BOI, sensing the opportunities available with the country’s successful adoption of advanced robotics in manufacturing, is providing strong incentives to businesses in the field. These
include exemption of corporate income tax for 8 years, with an additional 50% reduction for thefollowing 5 years. Import duty on machinery and raw materials will likewise be exempted, and landownership for foreign investors in this field will be allowed.
Continue Industry4.0 on Page 3

Amata Vision
Successful Management
Starts From Within

By Warapatr Todhanakasem
Director at Amata Corporation Public Company Limited
Thailand’s 1997 financial crisis was aturning point – not just for the economy, but for the entire region. Management standards used to be very loose,with too many corners cut and too little
attention paid to running companies ina sustainable way that encouraged longterm internal health and success.
To earn back the trust of investors, thecountry needed stricter standards on
corporate governance and transparency, beginning with the establishmentof a reputable agency to audit internal
practices at a management level. Werecompanies taking their Code of Conduct policies seriously? Were their statedprinciples being observed and enforced?
Were they making sincere efforts to develop the skills and morale of their employees?
The new era of accountability ensured
that businesses would need to invest in
responsible internal governance practices because potential investors could easily find out whether any given company
was built on solid foundations. By andlarge, businesses made the right adjustments, money started coming back in,
and Asian economies began to rise once
again.
Put simply, the investors were right. My
fifteen years as a management trainerand facilitator has taught me that theright internal governance does indeed
make the difference between a company
that is on a tenuous lucky streak and onethat has the underpinnings of real success in the long run.
Throughout my time as a formal and informal adviser to businesses across Asia,
I have found that the most important
single variable to a company’s successis the level of motivation within management to commit to sound businesspractices. A dedicated team can always
improve on its missteps, given the righttraining.

I have maintained a close relationshipwith Amata from the beginning, andhave always viewed it as a model for
professionalism in its commitment to its
employees as well as its principles. One
of my most powerful memories of Khun
Vikrom’s dedication to his original vision comes from his response to an environmental issue decades ago. He had insisted on an Amata policy of producing
zero pollution, but a factory belonging
to one of our tenants had set itself up in
a way that allowed dirty runoff to entera nearby river.
Vikrom’s response was unequivocal. Although the pollution didn’t technicallycome from Amata itself, the surrounding community would nevertheless suffer because of it. Therefore, it became
Amata’s responsibility, and so the estate
would need to take action to prevent therunoff.
Amata’s approach to its own employees
shows a similar sense of responsibility,
on the principle that the happiest employees will be the best ones. Accordingly, we provide healthy meals free ofcharge for all our on-site staff, as well as
medicine and vitamins when needed.
Personal development is also key; Amata
invests in English-language learning for
employees at all positions, and promotions are often contingent on language
ability, as well as job performance.
A successful company culture is one
where employees are treated as friends,
hard work is rewarded, and good relations are maintained with the community at large. In Thailand, Vietnam, andbeyond, the trends for corporate governance are moving in the right direction,
and a continued focus on holistic development suggests a bright future for theregion. In a win-win corporate culture,
everybody does indeed win.

Amata Timeswww.amata.com					Customers in Profile
Thomas Chambers, Managing Director
Continental Automotive Thailand
Guiding Continental’s new office and factorythrough their initial stages has been a great responsibility over the years, but the sense of teamwork and achievement has made it more thanworthwhile.
The fast-moving innovation and excitement
across the industry represents an extra reward forThomas and his team. Continental is at the leading edge of some of the auto industry’s hottest
trends, including automated driving, advanced
driving safety technology, heads-up displays, andfuel supply systems, as well as fundamental components such as tires and brakes.
For Thomas Chambers, the thrill of going to an
auto show never goes away. Each time he seesthat lineup of brand new cars, he already knows
the parts that have gone into them… because hiscompany makes them.
“It’s amazing to be involved all the way from thedesign stage through production, and then to see
the finished product right there in front of youon the showroom floor. To be able to say: ‘I’m
part of that. I helped make that possible.’ It’s aterrific feeling.”
Thomas has been part of Continental Automotive since 1995, spending over a decade as a sales
manager and director before coming to Thailand
to build the company’s presence in Bangkok andoversee its production line at Engine Systems
Manufacturing Plant in Amata City, Rayong.

As the industry changes, so must Continental.
Its products used to be exclusively mechanicalin nature, but the shift toward electronics has
prompted Continental to bring aboard 8,000
software engineers, all working to develop thenext generation of automobile components.
Success in the new business landscape requires afundamental re-thinking of business. As Thomas
puts it, “I think of us as a well-balanced techcompany that happens to be in the automotive
industry.”That well-balanced approach has also become akey philosophy for those within the company.
Continental’s four core values – ‘Freedom toAct’, ‘Trust’, ‘Passion to Win’, and ‘For One Another’ – provide an internal culture of teamwork,
support, and the kind of autonomy that leads totrue innovation.

Industry 4.0
Continued from Page 2
Other government agencies, such as the Ministry of Finance, are also considering offering additional benefits to companies involved with robotics. These benefits are even more attractive when
considering the relatively low 3% import duties on machinery in Thailand. Other countries in Asia,
notably China, are offering attractive packages to robotics companies as well.

Thomas likewise keeps his own life as balanced
as possible, given his demanding travel schedule.
Motorbike racing is one of his special passions,and it has the added bonus of requiring totalcommitment and focus, so that his mind can be
entirely free from business for a few hours at atime. While not racing, he can often be foundplaying golf, water sports, or simply relaxing at
the beach.
With this healthy approach to business and life,
Thomas sees himself and his multinational teamas a perfect fit for the welcoming culture that canbe felt across Thailand. For financial and logistical reasons as well, the country also happens tobe an ideal hub for the manufacture of automotive components across ASEAN, particularly as
it presents a perfect fit for BOI incentive programs.
The economic fundamentals of Thailand, inparticular, have proven themselves to be strong
over time, most notably in the period following the 2009 economic crisis. Continental neverwavered in its commitment to its Thai locations
during that time, and has since been rewarded
with an extended period of growth and expansion.
With its clear and confident vision of the roadahead, Continental seems poised to continue its
successful run in Thailand and overseas. Thomas, for his part, looks forward in equal measure
to the next innovation on the horizon, as well as

his next chance to take his motorbike out
to the racetrack – powered by Continental
parts, of course.
Continental Automotive provides systems
and components for cars and motorcycles
worldwide.

Product lines: brake systems,
powertrain and chassis components,
automotive safety equipment, vehicle
electronics and tires
Corporate office: Hanover, Germany
Branches: 430 locations in
55 countries
Revenue: 39.2 billion euros (2015)
Number of employees in Thailand: 490
Number of employees worldwide:
Over 200,000
Owned by: Schaeffler Group

Continental Automotive takes an active role in CSR projects, providing
annual road safety workshops for secondary school students in Rayong.
Continental has delivered training toover 1,000 students through this program over the past five years and haveprovided 750 free motorbike helmets.
Continental staff have also participated in mangrove tree planting (1,400
trees) in a salt-water marsh, and thecompany donated food and supplies
to Ayutthaya in 2011 in a flood relief
effort.

CSR at Amata

Among those in line to benefit most from this new era in manufacturing are the big automakers,
more than a dozen of which have factories in Thailand. Electronics and makers of machinery arealso expected to rely heavily on the new technology in the future, as are the major players in agriculture and food processing.

Estimated worldwide annual supply of industrial robots
Automotive industry
Electrical/electronics
Metal
2015
2014
2013

Chemical, rubber and plastics

Caring for Kids

Food

Amata Vietnam’s CSR team continuallyaims to help less fortunate and disabledchildren.

Others
Unspecified
0

20,00040,00060,000Units

80,000 100,000 120,000
Source: World Robotics 2016

Such an irresistible trend is well on its way toward changing the face of production worldwide. With
the era of Industry 4.0 now upon us, robots on the production line will soon be as common a sightas hard hats and safety goggles – with an increase in output to accompany them.

From contributions collected at Amata
Vietnam’s 20th Anniversary celebration
charity fundraiser, activities have beenorganized to help upgrade infrastructureand facilities at children’s care centers– the Bien Hoa Orphan Training andSponsor Center and the Dong Nai Disabled Orphan Education and Care Center – in nearby communities. Donations

3

also included needed daily goods, toys,
food supplements, stationery, and otheritems worth around VND 150,000,000(USD 6,700). Also, a cheque was presented to Dong Nai Red Cross.
The organization is making it possible
so that less fortunate children with heartdisease can receive necessary treatments,
including vital surgeries.

4

Amata Times			

Q4 2016 - Q1 2017

Customer News
Vietnam’s leading footwear
manufacturer expands
to Amata City Bien Hoa

McCormick grows at Amata
with new facility
Michael Bratan, Director Global Engineering McCormick shakes hands with Chackchai
Panichapat, Executive Director Amata Corp.
Also in the photo: Thitigorn Rojanasasitornwong, Business Development Director SEA
and General Manager McCormick Thailand(second left); Kiattisak Racsenawanich, Financeand Admin Manager McCormick Thailand(far left); Ian Hamilton, Director Industrial
Services Colliers International Thailand (farright); Viboon Kromadit, Chief Marketing
Officer Amata Corporation (third from right);
and also from Amata, Chattrakarn Tumpakorn, Sales Executive

Lai Khiem, General Director, Dona Biti’s Imex.
Corp. Pte. Ltd., and Sudo Osamu, Senior Marketing & Sales Manager, Amata (Vietnam) JSC,
are holding the agreement.

Dona Biti’s Imex. Corporation Pte. Ltd. is
the leading footwear (slippers, sandals, sports
shoes, fashion shoes, and others) manufacturer in Vietnam, with over 4,000 shops andagents nationwide and exporting to more than

40 countries all over the world. The company
signed a property lease agreement with Amata(Vietnam) JSC for the lease of a land plot at
Amata City Bien Hoa of 34,000 square meters. Dona Biti’s will invest around VND 150
billion (USD 6.6 million) in the new factory,
expected to be ready by early 2018.

Laris Global Thailand to triple
production capacity after
new mill ground breaking
From left: Mr. Nopporn Phatthararuchi,Country Manager (Thailand); Mr. Akarathon Sereechaikul, Mill Manager/Managing Director; Mrs. Hoany Muljadi, Chief
Executive Officer; and Mr. Tonny Widjaja,
Finance Director.

Laris Global (Thailand) Co., Ltd., the manufacturer of tissue paper made from 100% virgin pulp (natural tissues), including the brands
Paseo, Nice, Jolly, and Livi, organized a groundbreaking ceremony of the new mill over 100
rai (160,000 sqm) in size at Amata Nakorn Industrial Estate to triple its production capacity.
The investment budget is over 1.5 billion baht.
The company intends to respond to consum-

ers’ needs with the tissue paper made from
100% natural tissue that brings customers soft touch and safety, but no phosphor
and no bleaching powder (OBA free); heavy
metal residues are not included. The company selects 100% natural tissue from ecofriendly and sustainable forests where newtrees are planted continually. Consequently,
the products are eco-friendly, easy to decay,
and do not lead to bacteria accumulation.
Products are sterilized at high temperature,so it is confident that all brands under Laris
Global are clean, natural, and safe.

Molding expert Tontec Precision
Tooling signs deal with Amata

The sale agreement McCormick Thailand
and Amata Corporation have signed represents a major milestone towards supporting
McCormick’s growth plans in Thailand andSoutheast Asia. McCormick Thailand started operations in 2003 through the openingof its existing manufacturing facility locatedin the Eastern Seaboard Industrial Estate
Rayong, serving industrial customers locatedin Thailand and overseas.
“To be better able to support our customers,
and our overall growth ambitions for Southeast Asia, we are excited to be investing in
the construction of a new facility in Thailand
at Amata Nakorn,” says Daniel Moorfield,
McCormick President, Asia Pacific Zone.
Following a USD 30 million investment,
McCormick’s Thailand new facility in Amata Nakorn, built on a plot of 12 rai, will
support industrial and retail customers in
Thailand, across the region, and globally. By
consolidating McCormick’s current manu-

facturing capabilities from Thailand andSingapore, the company will create a much
more flexible and efficient supply chain operation. When fully operational, the new facility will create 200 jobs, operating acrossthree shifts.
Michael Bratan, McCormick’s Director of
Global Engineering, adds, “After a thoroughevaluation, we believe Amata Nakorn Industrial Estate is a perfect match to our longterm growth journey in Thailand. We havebeen thoroughly impressed by the quality of
the infrastructure across the Industrial Estate
and the high level of professionalism of everyone on the Amata team. We are looking
forward to a successful business relation formany years to come.”
We are truly proud to welcome McCormickto the Amata family and wish you every success to come!

www.mccormickcorporation.com

Business Center
Krungsri organizes special seminarfor Japanese customers

Veerajak Jareonleenava, Managing Director
Tontec Precision Tooling (Thailand) Co.,
Ltd., center, is seen with Amata Corporation PCL.’s Chackchai Panichapat, Executive Director (right), and Viboon Kromadit,
Chief Marketing Officer (left).

Tontec International’s subsidiary, Tontec Precision Tooling (Thailand) Co., Ltd., recently
signed a land purchase and sale agreementwith Amata Corporation PCL. for a plot of
land of 12 rai at Amata Nakorn, Chonburi.
Tontec Company was established in 1982
with headquarters in Hong Kong. It operates
several modern and advanced manufacturing
plants throughout China. Tontec International

produces high quality products; its expertise covers plastic injection molding, metal
stamping, mold and die making, silk screening and pad printing, spray painting, andassembly.
We are much honored that Tontec has chosen Amata for its first plant in Thailand andthe ASEAN region. Welcome to the Amata
Family!

ww.tontec.com

CONTACT US
Please follow us on our corporate website, Facebook, and LinkedIn:
https://www.facebook.com/AmataCorp

www.amata.com

https://www.linkedin.com/company/amata-corp.-pcl

Email us at marketing@amata.com

Krungsri (Bank of Ayudhya PCL) organized a special seminar for Japanesecustomers in Amata Nakorn Industrial
Estate and nearby areas to share an insightful overview of Thailand’s market
and economy including the outlook forthe second half of 2016. Mr. Masashi
Onodera, Krungsri Deputy Head of
JPC/MNC Banking, delivered the opening remarks and welcomed Japanese executives, as well as three speakers who are

specialists in financial market, economy,
and cash management service. The seminar, arranged at Amata Spring Country
Club, also introduced the new Krungsri
Business Center at Amata Nakorn Industrial Estate Chonburi, which servesinternational trade, international fundtransfer, and domestic cash management
services for Thai, multinational, and Japanese customers whose production bases
are located in the industrial estate.