AUSTRALIAN FIRM MOVES ENTIRE OPERATION IN THAI JOINT VENTURE

       Autumn Solar, an Australian-based supplier and installer of heating for swimming pools and spas, plans to move its entire operations in Australia and China to Thailand within two years.
       The move is designed to take advantage of the Thai-Australian Free Trade Agreement (Tafta), which comes into force next year.
       Director Stephen Merrett said his company had exported swimming-pool equipment, such as solar-heating systems, underwater lights and salt chlorinators to the United States and many countries in Europe and Asia from its plant in Australia. However, its home-town location was no good for exports, thus, the company decided to move, so it could expand its export markets and save on transportation costs.
       Autumn Solar is Australia's market leader in heating installations for swimming pools and spas. It is among the top five in Australia's swimming-pool industry.
       Merrett said Autumn Solar had exported swimming-pool equipment to JD Pools 2004 (Thailand) for a few years. It recently concluded an agreement with the Thai firm to establish a joint venture in Phuket with registered capital of Bt50 million, to manufacture a comprehensive range of equipment in Thailand. Both parties will own half of the joint venture.
       "We will transfer know-how in manufacturing swimming-pool equipment to our Thai partner. The company will gradually move its operating plant from Australia to Thailand within two years. Then the office in Australia will become a sales company," he said.
       Merrett said the joint venture would take advantage of Tafta, which would cut export and import taxes to zero from next year.
       Autumn Solar's turnover was US$15 million (Bt501 million) last year, $3 million of which came from exports.
       "I expect to increase export sales by 15 per cent next year after we have partly moved our operating base to Phuket. Once we are fully operational in Thailand, export revenue is targeted to rise by 70 per cent within five years," Merrett said.
       JD Pools 2004 (Thailand) CEO Thanusak Phungdet said the joint venture would strengthen his company, because it would be able to manufacture both swimming pools and equipment in Thailand. The local cost of installing swimming pool equipment would fall 15-20 per cent.
       He said JD Pools and Autumn Solar would jointly expand export markets. The companies plan to penetrate France next year.
       JD Pools expects revenue of Bt600 million this year, 20 per cent from exports. It plans to increase the revenue contribution from exports by 15 per cent next year and balance the portions of revenue coming from domestic and export markets within three years.
       "We have been granted privileges by the Board of Investment, but our export proportion does not meet the BoI's criteria. The collaboration with the 26-year-old Australian firm will help our company to expand its export markets," he said.