In the past year, the world economy has slowed down because, firstly, the uncertainty in business from trade war between the United States and China, resulting to the adaptation in various productions and trades in order to cope with the continuous changes.
Secondly, in early 2020, the epidemic COVID-19 is causing the economic disruption as the tourism industry drops and some industries have to shut their assembly and manufacturing lines which rely on main parts and materials supplied from China. This impact is widespread rapidly, hence, many countries have to implement their preventive measures to handle with this situation seriously.
The industrial manufacturing and business operation sectors are facing a situation where technology is rapidly changing particularly in digital transformation to integrate the digital technology into all areas of a business to reach the customer faster. In addition, the behavior and experience of customer has changed and influenced a business adjustment to sustain business growth.
Moreover, the industrial manufacturing sector has an emphasis on the significant issues of global warming and pollution emission, whereby the automotive industry has played an important role on both increasing the energy efficiency and reducing pollution emission. During the past year, the automotive industry has increase in the production and sales of hybrid electric passenger cars and electric cars, including lightweight auto part design and vehicle design to conform to the reduction of carbon dioxide (CO2) under CO2 emission standards impacting on the transformation in the automotive industry to deal with such change.
The companies in Somboon Group, as a part supplier for customers of many brands in Original Equipment Manufacturers (OEMs), have short-term and long-term plans in order to support business operations in amidst of the changes in the automotive industry and technology transformation as well as improved management efficiency to carry on the business operations as planned.
In order to response the customers’ demands, both in terms of product design and production technology, in 2017, the Company had joint venture with Mubea Engineering AG under the name of Mubea Somboon Automotive Co., Ltd by cooperation in the study, research and development of spring and stabilizer bar products to support the shift in the automotive industry, which demanded for lightweight parts with higher efficiency. Furthermore, in September 2019, the companies in Somboon Group acquired shares of Nippon Kikai Engineering Co., Ltd., which was an important step in the progress towards the development in design and installation of the automation system business in various industries, including the production system of the companies in Somboon Group.
In 2019, the business performance of the companies in Somboon Group had a sales revenue of 8,006 Million Baht, a profit of 895 Million Baht, in which the profit was similar to the past year as a result of business operations in accordance with the plan and prudent management. It deems that the Company continues to retain its strength and stability in terms of its business operations.
The companies in Somboon Group still remain commitment to development under the SBG’s philosophy “Somboon Triple Bottom Line” in order to create balance which consists of Smart People, Business Trust and Growth Society to achieve sustainable growth by determination in the development of personnel to be higher effectiveness and efficiency in order to increase competitiveness as well as support the growth and technology transformation. Furthermore, the Company has promoted, supported and developed the potentials of personnel at every level by developing the process to empower such personnel to take part in creating innovations at work, apply the mentioned creative ideas and then finally adapt and manifest that concepts into tangible actions, as well as cultivate and develop personnel in terms of knowledge in parallel with morality to become a good people and smart people, thus, further creating “Somboon Smart People.”
In this opportunity, we would like to thank the Board of Directors, executives and employee for their steadfast commitment and diligence as we continue to work and drive the expansion of the companies in Somboon Group’s business and steer our journey towards truly sustainable business growth by transparency, good governance and social responsibility.
On behalf of the Board of Directors and executives, we would also like to express our gratitude to shareholders, customers and business partners for your trust and confidence in the potential of the Company and we look forward to your continuous support in the future.