Japanese Company Toshiba Wants Import-duty Waiver During Restoration of Plant

Toshiba Thailand is seeking a waiver of import duties so that it can bring in home appliances from China to satisfy domestic consumers while its factories in Pathum Thani are recovering from the flood.

The company's nine plants and one warehouse in Bangkadi Industrial Park and another plant in Nava Nakorn Industrial Estate are still closed because of the recent massive flood. The company faces at least Bt500 million in losses because 200,000 refrigerators and washing machines were stored at the flood-hit warehouse.

Vice president Nattaphong Areekul said on Dec. 19, 2011 that the company made this request to the government last week to help it continue in business until its factories could resume production by March.

Its imports are currently taxed at about 30 per cent of their value.

Before an import-tax waiver is approved for finished goods, the Industry Ministry has to sign off on the industrial standard for those products.

The situation is critical, so the government should be flexible on this point to support the company, as Bangkadi Industrial Park is the most important manufacturing centre for home appliances, semiconductors and lighting products in Southeast Asia, Nattaphong said.

The company will immediately source two-door refrigerators and washing machines from China if it gets the green light from the government.

Toshiba's plant in Nonthaburi for one-door refrigerators and digital kitchen appliances remains operational, so the company could go ahead with its launch on Dec. 19, 2011 of its Twist one-door fridge, backed by a Bt100-million marketing budget for next year. One-door models make up 60 per cent of the refrigerator market. The company expects to gain a share of 22 per cent.

President Yukiharu Adachi said that despite this disaster, Toshiba would restructure its production lines next year to serve local demand better. For instance, the Twist refrigerator was designed by a Thai firm and should meet local buyers' needs. This will enable the company to create a wider range of products to capture new customers.

The Japanese parent company will continue all of its businesses here and invest further despite the huge impact from the flooding, he added.

Toshiba Thailand expects to realise Bt8.5 billion in revenue in the 2011 fiscal year ending March 2012 and Bt10 billion in the following year.

At Sony Thai, Pinyo Samguansethakul, deputy general manager for sales, said the company saw positive signs of recovery after consumers began to spend money again, he said.