Somboon Hotrakool President

Electrical and Electronics Institute (EEI), Thailand

Current Market Situation of Electrical Appliance Sector

in Thailand

Outlines

Overview of Electrical and Electronics

Industries in Thailand

Steel sheets for Usage in Electrical Appliance

Industry

Overview of Electrical and Electronics Industries in Thailand

2,306

No. of E&E Manufacturers

100

307

313

393

552

641

Other

Trader

Supporting

Electrical

Electronics

Electrical Parts

No. of E&E Manufacturers

Classified by Sectors

No. of E&E Labors

745,319

Electronics 51%

Electrical Parts 22%

Electrical 14% Supporting

Industries 7%

other 6%

No. of E&E Labors (%) classified by sub-sector

Source: EEI, September 2016

745,319 labors

Overview of Electrical and Electronics Industries in Thailand

New investors & manufacturers Jan - Jun 2016

Source: DIW, and Classified by EEI

Total Investment Value 14,205 Mil.Baht Approved

for Operations

47 Factories

• Home Appliances (Refrigerator) • Solar Cells/Modules • Electric Wires • Electronics Parts and

Components • LED, etc.

Sectors Large Enterprises Electronics Parts and Components

(4,232 Mil.Baht)

Solar Cells/Modules (4,307 Mil.Baht)

Home Appliances (Refrigerator) (3,178 Mil.Baht)

• Home Appliances and Parts

• Parts of AirCon.

• High Voltage Equipment /Wires and Components

• Switch Board, etc.

Total Investment Value 6,780 Mil.Baht

32 Factories

Start on Operations

Large Enterprises

Solar Cells/Modules (727 Mil.Baht)

Home Appliances (Refrigerator) (3,709 Mil.Baht)

Sectors

Total E&E Investment Value: Net Applications (Unit: Billion Baht)

126.8

100.49

134.22

28.95

2.2

24.24

2012 2013 2014 2015 2015(Jan-Jun)

2016(Jan-Jun)

Proportion to Investment Value: Net Applications Classified by Industries in 2016 (Jan-Jun)

Agriculture &

Agricultural Products

12%

Metal Products, Machinery

& Transport Equip. 15%

E&E 8%

Chemicals, Plastics & Paper

6%

Services & Public Utilities 53%

Other 6%

Source: BOI

Overview of Electrical and Electronics Industries in Thailand

Total Investment Value : Net applications granted by BOI

100.00 96.44

100.08 106.23

102.83

109.60

90

100

110

120

2011 2012 2013 2014 2015 2016f

E&E MPI during 2012-2016f

Overview of Electrical and Electronics Industries in Thailand

Manufacturing Production Index (MPI) and %Growth

% Growth of E&E MPI in Y2016f = +6.6%

4 12 21

-5

11 3

-5

9

-28

13 7

-52

-2 -17 -16

2

-60-40-20

02040

%Growth of MPI by Products in 2016 (Jan-Jun)

Source: OIE , EEI / Note: Year Base in 2011

53,070 54,157

53,413

55,728

53,993 53,085

43,413

47,441

45,057 44,871 44,597 43,795

40,000

42,000

44,000

46,000

48,000

50,000

52,000

54,000

56,000

58,000

2011 2012 2013 2014 2015 2016e

EE export

EE import

%Growth of Export Value

in Y2016f = -1.6%

7

Overview of Electrical and Electronics Industries in Thailand

Total E&E Export & Import Value during 2011-2016f (Unit: Mil.US$)

Source: The Customs Department , and accumulated by EEI

2,570

1,674

1,339

1,484

762

3,728

2,539

1,435

1,440

1,461

687

3,532

ASEAN (-1%) US (-14%) EU (8%) JP (-2%) CN (-10%) other (-5%)

Electrical

2015(Jan-Jun)

2016(Jan-Jun)

Growth

4,994

5,026

3,647

2,684

2,295

8,328

4,818

4,850

3,617

2,488

2,018

7,911

ASEAN (-4%) US (-4%) EU (-1%) JP (-7%) CN (-12%) other (-5%)

E&E 2015(Jan-Jun)

2016(Jan-Jun)

2,423

3,352

2,308

1,200

1,533

4,600

2,279

3,414

2,177

1,027

1,331

4,379

ASEAN (-6%) US (2%) EU (-6%) JP (-14%) CN (-13%) other(-5%)

Electronics

2015(Jan-Jun)

2016(Jan-Jun)

Growth

Growth

Overview of Electrical and Electronics Industries in Thailand

E&E Export Value (Unit: Mil.US$) and %Growth Classified by Major Markets in 2016 (Jan-Jun)

Source: The Customs Department , and accumulated by EEI

Overview of Electrical and Electronics Industries in Thailand Major Products Export Value (Unit: Mil.US$) and %Growth in 2016 (Jan-Jun)

0500

1,0001,5002,0002,5003,000

AirCon(7%)

Fridge(4%)

Digital Cameras(-24%)

Washing Machine(-7%)

TV(-40%)

5 Major Electrical Products

2015(Jan-Jun) 2016(Jan-Jun)

%Growth

Source: The Customs Department , and accumulated by EEI

02,0004,0006,0008,000

10,000

Computer Parts andComponents

(-7%)

Integrated Circuit(-3%)

Diode/Transistor/Semiconductor

(80%)

Printed Circuit(-10%)

Reception Apparatusfor radio-telephony

/broadcasting(-28%)

5 Major Electronics Products

2015(Jan-Jun) 2016(Jan-Jun)

%Growth

Overview of Electrical and Electronics Industries in Thailand

Total Value : Domestic Market

398,603

500,488

431,607 444,904 446,039

2011 2012 2013 2014 2015

Domestic Sales (Unit: Mil.Baht)

Home Appliances

18%

Smart/Mobile Phones

31%

Computer/IT 51%

Proportion of Domestic Sales (%) Classified by product segments

Y2015

Total Sales in 2015 = 446,039 Mil.Baht

Source: Studied by EEI , March 2016

Overview of Electrical and Electronics Industries in Thailand Total Volume of some production for Domestic market

Source: EEI

2014 2015 2016 (Jan-Aug)

Air Conditioner

2.42

2.52

1.23

Refrigerator

1.73

1.52

0.91

Washing machine

1.43

1.48

0.73

Amount: million units

Outlines

Overview of Electrical and Electronics

Industries in Thailand

Steel sheets for Usage in Electrical Appliance

Industry

Steel Sheets for usage in Electrical Appliance Industry

HOT ROLLED STEEL SHEET

COLD ROLLED GALVANIZED STEEL SHEET

COLOR COATED STEEL SHEET / PCM STEEL SHEET

COLD ROLLED STEEL SHEET

Others; STAINLESS STEEL, NICKEL PLATED STEEL, ZINC COATED

STEEL SHEET

SPCC, SPCG, SECC, SECD Specification

Estimated total demand of steel for usage in A/C per year (ton)

103,309

129,099

141,440 147,841 144,486

2011 2012 2013 2014 2015

Cumulative material cost of steel for usage in product

Steel 8%

Other Material

92%

Source: EEI

Steel Sheets for usage in Electrical Appliance Industry Product : Air-Conditioner

SPCC, SPCG, SECC, SECD

52,311

60,945

56,790

55,127 55,910

2011 2012 2013 2014 2015

Steel 10%

Other Material

90%

Estimated total demand of steel for usage in R/F per year (ton) Cumulative material cost of steel for usage in product

Specification

Steel Sheets for usage in Electrical Appliance Industry Product : Refrigerator

Source: EEI

Steel Sheets for usage in Electrical Appliance Industry Product : Washing Machine

SPCC, SPCG, SECC, SECD

49,200 51,035

45,896

39,007

42,878

2011 2012 2013 2014 2015

Steel 10%

Other Material

90%

Estimated total demand of steel for usage in W/M per year (ton) Cumulative material cost of steel for usage in product

Specification

Source: EEI

Steel Sheets for usage in Electrical Appliance Industry Product : Rice Cooker

SPCC, SPCEN, STAINLESS STEEL

5,961

6,894 6,859

6,390

5,465

2011 2012 2013 2014 2015

Steel 15%

Other Material

85%

Estimated total demand of steel for usage in R/C per year (ton) Cumulative material cost of steel for usage in product

Specification

Source: EEI

Steel Sheets for usage in Electrical Appliance Industry Electric Fan

SPCC, SPCG, SILICON STEEL

5,793

7,166

6,679

6,364

6,956

2011 2012 2013 2014 2015

Steel 20%

Other Material

80%

Estimated total demand of steel for usage in E/F per year (ton) Cumulative material cost of steel for usage in product

Specification

Source: EEI

Steel Sheets for usage in Electrical Appliance Industry Product : Compressor

SPHC, SPHE, SPCEN

45,963 43,279

59,389

49,952 49,621

2011 2012 2013 2014 2015

Steel 45%

Other Material

55%

Estimated total demand of steel for usage in C/P per year (ton) Cumulative material cost of steel for usage in product

Specification

Source: EEI

Thank you for your Attention