Hemaraj Newsletter May 2011 - Hemaraj Land and Development PCL

HighlightsHemaraj AcquiresSIL/RILIn early October 2010, Hemarajannounced the purchase of the remaining75 percent of the shares in SIL IndustrialLand and, Rayong Industrial Land.The acquisition expands Hemaraj’sindustrial estate portfolio to six ownedand operated estates covering roughly31,300 rai or 13,000 acres, and supportsHemaraj’s efforts to develop industrialclusters, thus enabling it to provide theright utilities and infrastructure to meetthe needs of specific industries.S I L Industrial Land, which is now knownas Hemaraj Saraburi Industrial Land(Hemaraj SIL), is in Nong Khae District,Saraburi Province, only 70 kilometers northof Bangkok on Thailand’s main highway1, which facilitates road transportation toThailand’s north, east and south, as wellas Thailand’s major airports.As a result, Hemaraj SIL makes a greatlocation for a logistics cluster. In additionthis location is also ideal for an electronicscluster thanks to nearby ample water supplyfrom Pasak Cholasith Dam, an abundanttechnical workforce and proximity tovocational colleges and research facilitiesof reputable universities.Rayong Industrial Land, which is nowknown as Hemaraj Rayong IndustrialLand (Hemaraj RIL), in Ban Khai District,Rayong Province, is 22 kilometers fromthe Map Ta Phut deep-sea port and 60kilometers from Laem Chabang DeepSea Port. Its strategic location nearThailand’s major ports and the abundantand lower-cost workforce available inBan Khai make Hemaraj RIL an attractivelocation for export-oriented investors.In particular, Hemaraj RIL provides a costcompetitiveoption for the automotive andpetrochemical industries, which haveestablished clusters at Hemaraj’s EasternSeaboard industrial estates. Located inclose proximity to the company’s existingindustrial estates, Hemaraj RIL willcertainly help Hemaraj achieve synergiesthat will in turn benefit our customers.ESIE to PioneerEco-Industrial TownsConceptHemaraj is proud to have been selectedby the Industrial Estate Authority ofThailand (IEAT), Ministry of Industryto pioneer the Eco-Industrial Townsconcept in Thailand. The model scheme,which is being implemented at EasternSeaboard Industrial Estate (ESIE) andtwo other industrial estates (Bang Pooand Northern) is part of IEAT’s planto turn all industrial estates into Eco-Industrial Towns within ten years.The scheme emphasizes amicable relationsbetween industrial estate customers andlocal communities, including efforts toprotect and preserve the environment inand around industrial estates. Industrialestate operators commit to compliance withall related laws, particularly in the area ofenvironment, safety, occupational health,and energy, and local communities areencouraged to participate in taking care ofthe environment and related issues.While Hemaraj has always placed greatimportance on protecting the environmentand working with local communities, thismodel program at ESIE provides investorswith additional ‘peace of mind.’ Involvingthe local communities in ensuringenvironmental compliance allows ourcustomers to invest with confidence,secure in the knowledge that our industrialestates are environmentally-friendly andthat we have involved local communities,which significantly diminishes the likelihoodof protests against factories in ESIE.Hemaraj President & CEO David R.Nardone pointed out that being aresponsible member of the community isnothing new at Hemaraj:“As a leader in land development, it hasbeen our policy from day one to ensure thatour industrial estates exist in harmony withlocal communities and the environment. Wetake great pride in our commitment towardssociety. Indeed, for the past two decades,we have consistently demonstrated thatwe are at the forefront of green industrialestates and we remain committed tonurturing development of communitiesaround our industrial estates.“For example, in late 2009, Hemarajestablished an environmental monitoringcontrol center (EMCC) at ESIE, making itthe first private industrial estate in Thailand(after Map Ta Phut Industrial Estate),to employ this state-of-the-art system,which includes online water quality andenvironmental monitoring. By providingthis information through a website, wehave enhanced the transparency of ourenvironmental management, as it allowslocal communities to have confidencethat we are achieving all requisiteenvironmental standards.“The Eco-Industrial Towns model programallows us to work even closer with ourneighbors and further demonstratesHemaraj’s commitment to environmentalmanagement and being a responsiblemember of local communities.”Saving Coston Compressed AirCompressed air is a commonutility in most factories.Conventionally, when setting up a welldesignedsystem at a plant, efficientcompressors are selected and goodnetworks are installed and then put intoservice.Over time, however, the compressedair system ages, and there can also beproduction modifications or a reductionof machinery. This changes the demandand load profile of the compressed air,while the plant normally has not beenrectified to match the change on thedemand side. Therefore, the efficiency ofthe compressed air becomes worse thanoriginally planned for. The lower efficiency,unfortunately, occurs without being noticedand the electricity bill steadily increases.Another area of loss is the leakagein the network, usually at the joints,valves, or connections. This leakagemeans that more compressed air has tobe produced than what should be reallyneeded. In reality, a certain percentageof leakage is acceptable. However,minimizing leakage is one effective wayto reduce the electricity bill.In processes where heat will be needed,such as with hot water or steam, we atCofely (Thailand) can recover the heatfrom air compressors. This heating energyis cheap, if not free. One of our recentprojects is saving more than half a millionKWH/year of electricity for our client.A compressed air system normallyconsumes only a minor portion of thefactory’s energy. However, in these3

days of intense competition, every smallpercentage of savings counts.Hemaraj Projects 30%Growth in 2011With contribution from industrial landsales, industrial utilities and new propertylaunches in 2011.Hemaraj Land And Development Plcannounced key 2010 accomplishmentsas well as 2011 corporate goals andbusiness outlook.“2010 has been a significant year oftransition for Hemaraj as we broadenedour core business to offer complete worldclass industrial and property solutions,”said David Nardone, President& CEOof Hemaraj. “We believe we are wellpositioned to work on our businessplan and to achieve our goals, bothoperationally and financially.”2010 Operation results reflect significantgrowth in industrial land sales and utilities.For 2010 land sales rebounded to 930 raifrom 144 in 2009, with 41 contracts, 19new customers and 22 project expansionfrom existing customers. The 100 %acquisition of Hemaraj Saraburi IndustrialLand and Hemaraj Rayong Industrial Landin Q4 of 2010 added 2,771 rai of sellableland to the company’s industrial estatesand places Hemaraj with a total combinedarea of 31,350 rai in 6 industrial estates.Hemaraj Rayong Industrial Land isincreasingly attractive with its locationhalf way between the auto cluster andpetrochemical cluster on the easternseaboard with proximity to LaemchabangDeep Sea Port and readily available labor.As for Hemaraj Saraburi Industrial Land,the location is just an hour away fromBangkok and can be a good expansion tothe northern side of Bangkok for logisticsand electronics industries, with additionallabor supply from Saraburi province.“We expect a 30% industrial land growthfor Hemaraj in 2011 with industrial estateland sale of 1,200 rai, thanks to the positiveeconomic outlook of the country driven byboth domestic demand and export growth.4At Cofely (Thailand), we provide not onlyan efficiency solution for compressed airbut also for all utilities of our clients.In addition, the achievement being no. 13globally for automotive industry positionsThailand as the largest car export base inSEA,” said Nardone.“The 2011 investment policy of Hemarajwill remain focused on three corebusiness areas - industrial estate,utilities and properties. For industrialestate development we plan to add 50new contracts this year with 50% repeatcustomers. Capitalizing on ASEAN freetrade agreement we expect to attract moreinvestors from Japan, China, Australia andIndia. Rental space of ready-built factoryis expected to grow by 40% in 2011 withthe introduction of new product – largerand expandable factory - in the pipe line.2011 will also see significant improvementin revenue from industrial land sales andfactory rental resulted from the acquisitionof Hemaraj SIL and Hemaraj RIL. As forutilities, Gheco One IPP project will be onstream in early 2012. On the property side,the company is studying to launch newproperty projects in 2011 in Bangkok andEastern Seaboard.”, added Nardone.Executive Vice President, Vivat Jiratikarnsakulsaid: “We are extremely happy with 2010industrial land sales results as we havereceived a very positive response fromour clients. To date, local clients stand for21% while major international customersinclude active investors from Japan (33%),Europe (13%), USA (11%), Australia (5%)and Taiwan (4%). Investors from China,Singapore, Korea, Malaysia and Indiaare showing keen interest to invest. Wehave met our goals for 2010 and 2011 isshaping up to be an even better year.”The company currently operates sixindustrial estates with a combined areaof 31,350 rai (12,540 acres), locating 426distinct new customers, 148 automotivecustomers and 643 contracts to datewith estimate of over USD20 billionof investment. By industry clusters,automotive accounts for 35% of the totalIE space managed by Hemaraj, followedby consumer products (15%), chemical/petrochemical (12%), steel/metal (9%),building materials (8%), electronics (7%),logistics (3%) and others (11%).We manage to save millions of baht onenergy for our clients every year.Most importantly, we guarantee theefficiency, reliability and quality of theutilities. We relieve our clients from thisresponsibility, freeing them to focus ontheir business, thereby increasing theircompetitiveness.Find out more at our website:www.cofely.co.th.Mr. Sawat MacmyraxaGeneral Managersawatm@cofely.co.thA new strategic customer, CaterpillarUnderground Mining Pty Ltd, an Australiansubsidiary of Caterpillar USA - the world’sleading manufacturer of constructionand mining equipment and a Fortune500 company, signed in January 2011,a contract with Hemaraj to purchase 140rai of land at Hemaraj Rayong IndustrialLand in Rayong Province for Caterpillar’sfirst manufacturing facility in Thailand.Occupying a total area of 60,000 squaremeters, the factory is scheduled to befully operational in late 2012 and willincrease Caterpillar’s capacity for itsexisting range of underground miningmachinery to meet long-term customerdemand in emerging markets.Vice President, Sunthorn Kongsunthornkitkulsaid: “Apart from operational and financialexcellence, Hemaraj is also committed toenvironment, education and well-being ofpeople in areas we do our business. Inenvironment, Hemaraj has been and willcontinue to pursue our Eco-Industrial Townproject at Eastern Seaboard IndustrialEstate in cooperation with the IndustrialAuthority of Thailand (IEAT). Another ongoingeffort, Hemaraj’s EnvironmentalMonitoring and Control Center, whichis the first real-time monitoring unit in aprivate sector industrial estate establishedin 2010, is doing well in safeguardingthe environment and has been warmlywelcomed by communities and the public.On Education side, apart from AnnualSchool Contribution and Scholarshipprograms, the 2011 “Adopt-A-School -Train the Trainer” workshop and exhibitionwill continue to support and enhancecapabilities of teachers from schoolsaround Hemaraj’s industrial estates inRayong and Chonburi to impart moresustainable education to students, while theArt Camp project will cover students in 16schools and an addition of teacher trainingthis year. The skill trainings for housewivesinitiated last year will be expanded to covervocational training for local communities.Other on-going programs include freemobile medical unit, tree planting, youthand sports support program”.

To ensure high quality in caring for itscustomers, the plant follows a strictcontrol system involving various typesof inspections and total traceability.“Quality control is carried out down tothe smallest units. If a problem arises,we can respond quickly,” Mr. Saito said.Three years after the company wasestablished, Dowa Thermo-Tech(Thailand) bought the factory equipmentthat it had been leasing. “We wanted tostart small and then expand big,” Mr.Saito explained.This also held down expenses at first,and the purchase could be made afterdemand increased. That method ofinvestment shows how effectively thecompany utilized the flexible systemoffered by Hemaraj.“The purchase of the factory equipmentwas also a morale boost for employees,”Mr. Saito said.Heat treatment is an essential processin making metal parts stronger and moredurable. As there is an integration of autoparts and machine parts manufacturerstaking place in Thailand, the companysees demand for heat treatment andequipment maintenance increasing.After steadily developing its businessin Thailand, the company looks toestablish another base in the country asit anticipates further growth in domesticsales along with export opportunities.Moreover, the Dowa Thermo-Tech Groupalso now plans to set up facilities atcoastal areas in China to serve demandin the broadening Chinese market. Widerexpansion is also being considered.All the while, President Saito continuesto emphasize safety, the fundamentalpolicy aspect. The emphasis on safetyenables the company to improve quality,expand business, bring about productiveemployment, and contribute to society.Keeping things safe extends to the way thecompany protects the environment throughfuel enhancement and energy savings.Contact InformationMr. Etsuji SaitoPresidentDowa Thermo-Tech (Thailand) Co., Ltd.Tel: 038-959008http://www.dowa.co.jp/index_e.htmlJelly Belly CandyCompanySuccess Is Sweet atGourmet Jelly Bean MakerGrowth is coming rapidly to Jelly BellyCandy Company (Thailand) Ltd., both6as plant expansions and new productflavors. Since beginning operationson Halloween Day two years ago, theplant in Eastern Seaboard IndustrialEstate (Rayong) has expanded by 30%to 70,000 square feet. An additional60,000 square feet will be completed ina year to meet plans for locating moreoutput to Thailand.“This plant was opened to take careof Jelly Belly’s entire internationalmarket of gourmet jelly beans, all ofproduction except for the United Statesand Canada. We will fill this whole 7-railot with buildings,” said Mr. Herman G.Rowland Jr., Managing Director of JellyBelly (Thailand).The factory is a subsidiary of Fairfield,California-based Jelly Belly Candy Co.,one of the world’s leading confectioners.But while sales are down right now inAmerica, demand is on the sweet sidein the 52 countries that the Thai plantsupplies outside the United States. “Weare doing well,” Mr. Rowland said.Behind the impressive motto“Confectioners of Excellence Since1898,” the family-owned companyproduces some of the world’s mostpopular candies. Among the best-knownproducts is its signature Jelly Belly JellyBeans, the only line made in Thailand.There are also a hundred differentitems manufactured at the U.S. plants,including Jelly Belly Jordan Almonds,Licorice Pastels, Chocolate Dutch Mints,Gummi Bears and Candy Corn.The popularity of the company’s gourmetjelly beans took off like a rocket in the1980s when America found out they werea personal favorite of President RonaldReagan. Sales continued soaring whenthe product rode along on the SpaceShuttle as a special treat for astronauts.“I have all kinds of ideasfor flavors from Thailand.There are lots of differenttypes of fruits availablehere and things we can do.I want to have a Thai flavormix out in about a year.”Growth at the Thailand facility, which canturn out 24,000 pounds of jelly beansin an eight-hour shift, also means newand innovative flavors. “I have all kindsof ideas for flavors from Thailand,” Mr.Rowland said. “There are lots of differenttypes of fruits available here and thingswe can do. I want to have a Thai flavormix out in about a year.”Add that to the impressive list of 120 tastyflavors that Jelly Belly offers worldwide.The original eight jelly bean flavors ofcherry, lemon, cream soda, tangerine,green apple, root beer, grape and licoriceover the years led to innovations such asbuttered popcorn, cappuccino, jalapeñoand strawberry cheesecake.Making sweets has long been a familyaffair at Jelly Belly. The origins of thebusiness go back to the late 1800swhen two brothers of the Goelitz familyin Germany emigrated to America,pursuing their entrepreneurial dreams.While one brother settled in the Chicagoarea to handle the Goelitz ConfectionaryCo., the other took the Herman GoelitzCandy Co. to California. In 2001, thename was changed to the Jelly BellyCandy Co. for more immediate marketrecognition due to the enormous successof the jelly bean line.Mr. Rowland, whose middle initial “G”stands for Goelitz, represents the fifthgeneration of the famous candymakingfamily. His daughter Christine, PurchasingManager at the Rayong plant, carries onas the sixth generation.The decision to locate in Thailand at theHemaraj estate involved a wide search.“We looked all over the world to find theright place, at all kinds of business parksin China and everywhere else, and thisone stood out,” Mr. Rowland said.Thailand is also a perfect match forJelly Belly because two of the main rawmaterials used to make the company’scandy are produced in abundance here:tapioca and sugarcane. “We came hereas the world was turning to GMO-freeproducts. We had used corn syrup inthe U.S. but here the tapioca syrup isnot genetically modified,” Mr. Rowlandsaid.Meticulous attention to quality and aknack for innovation give Jelly Belly anedge over competitors. A big differenceis that the company focuses on using asmany natural ingredients as possible.

“We employ real fruit purees to makethe candy centers. If it is a peach JellyBelly, then we put in real peach puree,”Mr. Rowland explained.There is also no slacking off on thedetails. “You almost have to be an artistto pan the beans properly,” Mr. Rowlandsaid. The company’s watermelon jellybeans are a good example with notonly green shells but also red centers.Taking the Jelly Belly flair for creativity astep further, the R&D team is currentlyworking on putting tiny black “seeds”into the red watermelon centers.To show the local community that JellyBelly cares, the Rayong plant engagesin environmental and social assistanceactivities. These include recycling, treeplanting, donations to charities, andvisits to nursing homes.Contact InformationMr. Herman G. Rowland, JRManaging Directorhrowlandjr@jellybelly.comMs. Christie RowlandPurchasing Managercmrowland@jellybelly.comJelly Belly Candy Company (Thailand) Ltd.Tel: 038 926 410Switz McLarenRubber Tracks SpecialistPraises Thai CapabilityTwo key words at Switz McLarenIndustrial (Thailand) Co., Ltd. are“specialize” and “recognize.” While thecompany feels that product specializationgives it an edge in the market, it alsorecognizes the hard-working Thai staffas crucial to success.Located in Eastern Seaboard IndustrialEstate (Rayong), the company makesrubber tracks and flat-proof tires forcompact machines such as mini loadersand excavators in the construction andagriculture industries. A main feature ofthese products is the lack of downtimebecause the tracks do not get stuckin the mud and the tires will not go flatfrom a nail or escaping air. The plantalso manufactures protective rubberpads for the tracks of heavy vehiclessuch as military tanks.Switz McLaren Industrial (Thailand)is part of the U.S.-based McLarengroup. Founded in 1997, theprivately owned group now hasfacilities in six countries, with annualsales approaching US$100 million.Commencing operations in 2008, theRayong factory recently obtained ISO9001:2008 certification for its qualitymanagement systems. At the stateof-the-artproduction facility, 90%of output is for export, with Bobcatand Kubota among the major OEMcustomers.It is quality combined with specializationthat puts the company in a favorableposition over competitors. “Ouradvantage is that we offer a qualityproduct similar to that of competitorswho are a hundred times bigger but wedo so as specialists. That means whena machinery manufacturer decidesto work with us, we can immediatelyprovide a product tailored to theirneeds without the bureaucracy of avery big company with a large numberof products,” said Mr. RichardsonJohn Doyle, Coordinator for GroupOperations in Thailand.Youth and enthusiasm also help makeSwitz McLaren Industrial (Thailand)a top performer. Most of the plant’sexecutives, supervisors and mid-tiermanagers are young, which spreadseagerness to succeed. “They lookto see not what will come onto theirtable, but what they can put on thetable to help the company develop.”Mr. Doyle said.“I am very impressed withthe work and managementskills of the Thais.”In fact, 99% of the factory’s 150-strongworkforce is Thai. The goal in 2011 isfor the plant to become self-sufficientwithout any foreign involvement indirectors, managers and workers. “Iam very impressed with the work andmanagement skills of the Thais. Inother countries where I have been, it’swhen the cat is away, the mice will play.But here the young Thai managers takeresponsibility and want to do a reallygood job,” Mr. Doyle said.Switz McLaren Industrial (Thailand)aims to nearly triple annual output fromthe current 35,000 rubber tracks to100,000 units by 2014. Growth plansalso include possibly expanding beyondrubber products for the agriculture andconstruction machinery sectors. “Weare a dynamic company, always lookingfor opportunities,” Mr. Doyle said. “Onething we have been thinking about isentering into automotive parts such asengine mounts, hoses and extrudedparts.”The fact that Thailand is the world’slargest producer of natural rubber wasa key factor behind the company’sdecision to locate production here. Thisenables the plant to work directly withthe best rubber farms for convenientsourcing of top material to meetcustomers’ requirements.“We are treated just thesame as any of the biggercompanies here. We havenot been pushed asidejust because we are not inthe top 10 on the estate.”When Mr. Doyle was in Taiwan ata joint venture, imported labor wasbeing used there substantially. Manyof the outsourced laborers were fromThailand and he saw them as hardworkingand reliable.“The McLaren group was looking atpossibly opening a factory in China.But when I came to Thailand, I metwith the Thailand Board of Investmentand found the incentives offered tobe quite attractive. We knew thatChina would outpace and eventuallyget more expensive, so we realizedthat the investment environment inThailand was the best choice,” Mr.Doyle said.The company chose Hemaraj forseveral reasons. Besides the industrialestate’s excellent free-zone location,there was no problem in finding thespecific type of lot desired. “Just asimportant is that whenever we callHemaraj needing something, they getback to us immediately,” Mr. Doylesaid. “We are treated just the sameas any of the bigger companies here.We have not been pushed aside justbecause we are not in the top 10 onthe estate.”Contact InformationMr. Richardson John DolyeCoordinator Group Operations inThailandSwitz McLaren Industrial (Thailand)Co.,LtdTel: 038 955 978rj.doyle@mclarenusa.com7

Hemaraj NewsHemaraj HoldsAnnual Investors ClubMeetingHemaraj recently held its annualHemaraj Investors Club Meeting atPattana Golf and Sports Resort, Chonburito provide updates on industrial estatedevelopment, infrastructure and utilities.The meeting also featured the ThailandBoard of Investment’s policy andprivileges for 2011, and the launch ofCAT Telecom’s “Fiber Optic to Factories”– the latest value added service forHemaraj customers.In the picture: Mr. David Nardone (farright), President & CEO of Hemaraj,Mrs. Vasana Mututanont (4th fromright), Director, International AffairsBureau of the Board of Investment(BOI) and customers in Hemaraj’sindustrial estates.Hemaraj WelcomesChinese DelegatesHemaraj JoinsEco-Industrial EstateDevelopment InitiativeHemaraj has been chosen as one ofthe pioneers to implement the ecoindustrialestate development initiative.An MOU signing was held between theIndustrial Estate Authority of Thailand(IEAT), Department of Industrial Works,Ministry of Industry and selectiveindustrial estate developers to declaretheir commitment to sustainableeco-industrial estate development inThailand. The signing took place at anevent titled “Next Step of Eco-IndustrialEstate Development in Thailand”organized recently by the IndustryMinistry at BITEC.In the picture: Mr. Putthipong Punnagun(center), Vice Minister of Industry,Mrs. Monta Pranootnorapal (centerright), IEAT Governor, and Mr. PrasanTanprasert (5th from right), Chairmanof the IEAT Board of Directors, posefor a group picture with representativesfrom government and private agenciesafter the MOU signing. RepresentingHemaraj is Ms. Pattama Horrungruang(3rd from right), Senior Vice President.Hemaraj WelcomesNorth American Mediathe delegation explored Thailand asa destination for FDI, with the focuson the metal and machinery sector.On this occasion, the group visitedDanieli Far East, a global leaderin manufacturing equipment andcomponents for steel making plants,and AutoAlliance (Thailand) andGeneral Motors (Thailand), leadingautomotive manufacturers.In the picture: Posing for a picturewith the delegation are Ms. ChantanaHinkaew (2nd from left), Director,Corporate Marketing of Hemaraj, andMr. Boonnarg Mockmongkolkul (4thfrom left), CEO of Danieli Far EastCo., Ltd.Hemaraj’s TreePlanting at ESIEHemaraj recently organized a TreePlanting activity to expand green areasin ESIE. Mr. Pornthep Phuripat, formerDirector of ESIE (Rayong), IndustrialEstate Authority of Thailand, and Mr.Sunthorn Kongsunthornkitkul, VicePresident of Hemaraj, together withcorporate members in the industrialestate and community leaders planted1,000 trees during the event.Hemaraj welcomed delegates andinvestors from the Tianjin Municipalityand Shan’xi Province of China on theirvisit to ESIE and the Goldensea SankinFactory located in the industrial estate.Led by the Thai Board of Investment’sBeijing office, the group was on an officialvisit to Thailand to explore investmentopportunities in the oil and gas, electricity,and renewable energy industries.I n t h e p i c t u r e : M s . L a d d aRojanavilaivudh (2nd from left), Director,Customer Development of Hemaraj,welcomes the Chinese delegates.Hemaraj recently welcomed a mediadelegation from the United Statesand Canada that visited ESIE. Ledby representatives from the ThailandBoard of Investment’s New York office,8

What’s New with Our CustomersMinoru (Thailand)Purchases Ready-Built Factory in ESIEMinoru (Thailand) Co., Ltd., a Japanesemanufacturer of auto parts, recentlysigned a contract to purchase landand a ready-built factory in EasternSeaboard Industrial Estate (Rayong).The new plant will produce A/C ducts,spoilers, and HVAC cases at a capacityof 350,000 pieces per month, forsupply to automotive manufacturersand primary parts suppliers.In the Picture: Mr. David Nardone (middleleft), President & CEO of Hemaraj,exchanges the contract with Mr. TakahisaIkumoto (middle right), Senior ManagingDirector of Minoru Kasei Co., Ltd. Lookingon are Mr. Masaaki Tan (2nd from right),Director of Minoru (Thailand) Co., Ltd.,Mr. Vivat Jiratikarnsakul (3rd from left),Hemaraj’s Executive Vice President, andother executives.Narumi (Thailand)Purchases Ready-Built Factory in ESIENarumi (Thailand) Co., Ltd., a leadingmanufacturer of automotive doorhandles, recently signed a contractto purchase a ready-built factory inESIE. With a registered capital of 100million baht, the company will produceautomotive door handles for supplyto Mitsubishi Laem Chabang with acapacity of 2 million pieces per year.In the picture: Mr. Vivat Jiratikarnsakul(2nd from right), Hemaraj’s Executive VicePresident, exchanges the contract withMr. Shoji Mori (4th from left), Presidentof Narumi (Thailand) Co., Ltd., while Mr.Tetsuo Mori (3rd from left), Presidentof Narumi Goukin Manufacturing, andMr. Tamotsu Kunizawa (2nd from left),Director of Narumi Goukin ManufacturingCo., Ltd., look on.Bolwell Holdings(Thailand) PurchasesReady Built Factory atHemaraj ESIEBolwell Holdings (Thailand) Co., Ltd.,a leading composite mouldingsmanufacturer from Australia, recentlysigned an agreement to buy a ready-builtfactory at Hemaraj ESIE. The companywill produce composite mouldings at acapacity of 75,000 pieces per year for100% export.In the picture: Mr. David Nardone (3rdfrom left), President & CEO of Hemaraj,exchanges the contract with Mr. LinleyMorris Hughes (3rd from right), Directorof Bolwell Holdings (Thailand) Co.,Ltd., while Mr. Alexander Polgar (2ndfrom right), Bolwell’s Director, Mr.Vivat Jiratikarnsakul (2nd from left),Hemaraj’s Executive Vice President,and other executives look on.Foundation StoneLaying of ThaiKobelco’s 2 nd Plant atHemaraj ESIEThai Kobelco Construction MachineryL i m i t e d , a l e a d i n g J a p a n e s emanufacturer of hydraulic excavators,recently organized a Foundation StoneLaying Ceremony for its second plant atHemaraj ESIE. The new factory will havean annual production capacity of 480units of model SK300 and is expectedto start operations in January 2011.In the picture: Mr. Kazunori Yamashita(3rd from right), Managing Director ofThai Kobelco Construction MachineryLimited, poses for a picture with Mr. VivatJiratikarnsakul (2nd from left), Hemaraj’sExecutive Vice President, and otherHemaraj executives at the ceremony.Steel Alliance ServiceCenter OrganizesFoundation StoneLaying Ceremonyat Hemaraj’sIndustrial EstateSteel Alliance Service Center Co., Ltd.(SASC), a joint venture between JFEShoji Trade Corporation from Japanand Summit Group in Thailand, recentlyorganized a Foundation Stone LayingCeremony for its new plant at HemarajESIE. The plant has a total investment ofapproximately 2 billion yen or 743 millionbaht. Scheduled to start operations byApril 2011, the new plant will serve as asteel processing center with a capacityof 6,000 tons per month, mainly for theautomotive industry.In the picture: Mr. Sunsurn Jurangkool(front row, 3rd from left), President ofSummit Corporation Ltd.; Mr. KornkritJurangkool (front row, 2nd from left),Director of Summit Auto Body IndustryCo., Ltd.; and Mr. Yuji Imataka (frontrow, 3rd from right), Executive VicePresident of JFE Shoji Holdings, Inc.,JFE Shoji Trade Corporation; pose fora group picture with executives andguests attending the ceremony.9

Hemaraj Land And Development Public Company Limited18th Floor, UM Tower, Ramkhamhaeng Road, Suanluang,Bangkok 10250, ThailandHemaraj CIE:Hemaraj Chonburi Industrial Estate331/8-9 Moo 6 Highway 331, Km 91-92, Bo-Win Sub-district,Sriracha District, Chonburi 20230, ThailandHemaraj EIE:Hemaraj Eastern Industrial Estate (Map Ta Phut)18 Pakorn Songkrohraj Road, Huay Pong Sub-district,Muang District, Rayong 21150, ThailandESIE:Eastern Seaboard Industrial Estate (Rayong)112 Moo 4, Highway 331, Km 91.5, Pluak Daeng Sub-district,Pluak Daeng District, Rayong 21140, ThailandHemaraj ESIE:Hemaraj Eastern Seaboard Industrial Estate121 Moo 3, Tasith Sub-district, Pluak Daeng District,Rayong 21140, ThailandHemaraj RIL:Hemaraj Rayong Industrial Land222 Moo 11, Ban Khai-Nong La Lok Road,Ban Khai District, Rayong 21120, ThailandHemaraj SIL:Hemaraj Saraburi Industrial Land111 Moo 7, Nong Pla Kradi Road,Nong Khae District, Saraburi 18140, ThailandReady Built Factory18th Floor, UM Tower, 9 Ramkhamhaeng Road,Suanluang, Bangkok 10250, ThailandHemaraj Value Added Service CenterESIE Plaza I, 24/1 Moo 4 ESIE Plaza I , 2nd floor,Tumbon Pluakdaeng, Ampher Pluakdaeng, Rayong 21140Tel: 038 955 282-3E-mail: vas@hemaraj.comTel: (+662) 719 9555Fax: (+662) 719 9546, 719 9547E-mail: marketing1@hemaraj.com

What’s New with Our CustomersHemaraj CongratulatesThai Summit Engineeringat Foundation PillarLaying CeremonyMr. Vivat Jiratikarnskul (2nd fromright), Executive Vice President ofHemaraj, congratulates Dr. SompornJungroongruangkit (center), Presidentof the Thai Summit Group, and Mr.Katsuyuki Maeda (2nd from left),Managing Director of Thai SummitEngineering Co., Ltd., on the occasion ofthe Foundation Pillar Laying Ceremonyof Thai Summit’s new plant located on20 rai of land in Hemaraj ESIE. Withregistered capital of 50 million baht,the plant will produce OEM auto partsfor domestic consumption, includingconnecting rods, casing hubs and tubeassemblies. Capacity will be 2.02 millionpieces per year.Bosch ChassisSystems Celebrates5 Years No Loss TimeInjuryBosch Chassis Systems (Thailand) Ltd.,located at Eastern Seaboard IndustrialEstate (Rayong), celebrated five yearsor 1,826 days of No Loss Time Injury on25 August 2010. At the event, awardswere presented to seven employeesnominated as SafetyPerson of the Year, and the winners ofthe Safety Slogan and Safety Suggestioncontests. All Employees with anappreciation gift to mark the occasion.Bosch Chassis Systems (Thailand) Ltd.’snext target is to achieve 2,191 days orsix years No Lost Time Injury.Hemaraj Joins ZFLemforder (Thailand)for New Factory’s TreePlanting CeremonyHemaraj recently joined ZF Lemforder(Thailand) Co., Ltd for a Tree PlantingCeremony at ZF Lemforder’s newfactory in ESIE. The factory willproduce automotive parts for supply tomajor manufacturers. Executives andstaff from both companies were ledby Mr. Sirachat Samaikul (standing6th from right), Managing Directorof ZF Lemforder (Thailand), and Mr.Vivat Jiratikarnsakul (standing 4thfrom left), Executive Vice President ofHemaraj, in posing for a picture afterthe ceremony.From theClubsHemaraj Holds LaborRoundtable forManagementHemaraj recently held its annualHemaraj Investor Club seminar titled“Labor Roundtable foar Management.”Providing participants with updates on12labor issues, the seminar was attendedby over 100 representatives frommanufacturers operating in Hemaraj’sindustrial estates. Guest speakersincluded HR professionals from publicand private agencies who sharedinformation and case studies duringthe seminar. This was followed by aworkshop for executives to exchangeopinions on “Employee RelationsManagement.”In the picture: Mr. David Nardone(center), President & CEO of Hemaraj,poses for a picture with guest speakersMr. Virasilp Kunupatham (2nd from left),Rayong’s Labor Protection And Welfare;Mr. Bunchob Ongtanasin (far left), VicePresident of Toyota Boshoku Asia Co.,Ltd.; Mr. Chamnan Bhimolratana (3rdfrom right), Senior Vice President of BLCIGroup; Mr. Somnuek Ngamtrakulchol(2nd from right), HR Vice President ofGeneral Motors (Thailand); Mr.SuthinSuwannapretheep, General Managerof Thai Summit Eastern SeaboardAutoparts Industry Co., Ltd. and Mr.Michael Diamente (far right), ManagingDirector of Dana Spicer (Thailand) Ltd.camp.Safety and EnvironmentalClub Organizes CharityBowlingThe Safety and Environmental Club(ESEC) of Hemaraj EIE recentlyorganized a charity bowling competition.The proceeds will go to safety activitiesand good causes in the Map Ta Phutarea. Participating in the competitionwere 74 teams from manufacturers andsuppliers in Hemaraj EIE. The winnerwas the PTT Chemical Plc. team.

Hemaraj EIE’s Safetyand Environment ClubHelps to RepaintLocal School WallThe Safety and Environment Clubof Hemaraj Eastern Industrial Estate(Map Ta Phut) recently organizeda school contribution activity forthe Rayongwittayakom School.Mr. Sunthorn Kongsunthornkitkul(bottom), Vice President of Hemaraj,and Mr. Veerasak Permpangphun (top),Director - Office of Hemaraj EasternIndustrial Estate (Map Ta Phut), IEAT,joined club members, students and staffto repaint the fences of the school.66,500 baht of the proceeds from arecent Charity Bowling to purchaseamenities and equipment for a FirstAid Room at Rayongwittayakom NikomUtsahakam School. As a contributionfor the medical welfare of students,the donation included beds, pillows,blankets, bed sheets, partitions, andmedical cabinets.First Aid Donation fromHemaraj EIE’s Safetyand Environmental ClubThe Safety and Environmental Club(ESEC) of Hemaraj EIE donatedSafety and Environment CornerHemaraj Launches“Safe Roads”Campaign onIndustrial EstatesEven though Hemaraj tries its best toensure safety on the roads of our industrialestates, a perfect accident-free recordcannot be achieved without the help ofyou, the drivers. Together we must allmake careful efforts to avoid mishaps thatcan harm people, product and profitability.To encourage safe driving, Hemaraj islaunching a “Safe Roads” campaignfrom November 2010 to May 2011. Aspart of this, we are putting up billboardsat high-risk areas in the industrial estatesto emphasize safe-driving practices.คาดเข็มขัดนิรภัยThese signs will emphasize the following safety tips:• Never drink and drive!• Don’t drive when you are tired• Do not run red lights• Always use your safety beltลดภัยตอชีวิต• Exercise caution when making a U-turn• Speed kills! Slow down to save lives• Be considerate of others and give way at intersections• When riding a motorcycle, turn on the headlight and wear a helmetHemaraj would like to invite all factories to endorse the road safety campaign by communicating good driving behaviors to workers andsuppliers and encouraging them to take more precautions when on the road.SIZE 2 x 1.5m.SIZE 2 x 1.5m.Alway use yoursafety beltSAFE ROADSBe considerate of othersand give way at intersectionsSpeed kills!SAFE ROADSSlow down to save livesSocial ContributionHemaraj Helps MaabChalude CommunityThe Fire Fighting Team of Hemaraj, incooperation with Sriracha Green PointCo., Ltd., recently helped the MaabChalude Community and Huey PongHousing Estate nearby Hemaraj EIEclean the venue for Mother’s Day Fair2010. Hemaraj supplied 5,000 liters ofwater for the cleaning.13

14Hemaraj Provides FreeOptical Check-ups forCommunityThe Mobile Medical Unit fromHemaraj recently joined Health Fair2010, organized by Tasith SubdistrictAdministration, Rayong Province.During the fair, Hemaraj provided freeoptical check-ups and eyeglasses tovillagers.In the picture: Mr. Tiwa Prom-in (3rdfrom right), Pluakdang Sheriff, andMr. Pairoj Suemueng (2nd from left),Chief of Tasith Subdistrict Administration,along with Ms. Chantana Hinkaew (3rdfrom left), Director – Corporate Marketingof Hemaraj, observe at the fair.Blood Donation atHemaraj EIEThe Safety And Environmental Club(ESEC) of Hemaraj EIE in cooperationwith the Rayong Red Cross recentlyorganized a blood donation activity atthe industrial estate’s office. A total of124 participants consisting of Hemaraj’semployees and customers donated53,300cc of blood on the occasion.Hemaraj WelcomesCommunityRepresentatives atHemaraj RILHemaraj RIL recently welcomedcommunity leaders and representativesfrom the Nong Lalok Subdistrict andBan Khai District on their visit to UnityIndustrial Co., Ltd’s factory. The visitorsobserved the environment-friendlymanufacturing and internal managementsystem of the factory, and later joinedin a petanque competition with HemarajRIL staff.I n t h e p i c t u r e : M r. S u n t h o r nKongsunthornkitkul, Vice President ofHemaraj, welcomes the communityleaders at Hemaraj RIL.Hemaraj SupportsFootball Clinic ProjectHemaraj recently supported the FootballClinic and Special Football Match betweenthe Chonburi FC and Rayong All Starsteams. The event was organized by thePluakdaeng Subdistrict AdministrativeOrganization in association with theFootball for Health Club of PluakdaengDistrict, Rayong Province. The FootballClinic aimed to teach football techniquesto youths and promote good healththrough wholesome leisure activities.Mr. Tiwa Prom-in, Pluakdaeng District’sSheriff, and Mr. Sunya Baopoonthong,Hemaraj Corporate Affairs Manager,were among those attending the openingceremony of the Football Clinic project.Hemaraj Helps NongFab CommunityHemaraj Eastern Industrial Estate (MapTa Phut) recently contributed emergencyexit doors and drainage worth 200,000baht to the Wat Nong Fab School. Onthe same occasion, Hemaraj EIE alsojoined as a supporter of the Loi KratongDay’s Traditional Soccer Match of theNong Fab Community.In the picture: Mr. SunthornKongsunthornkitkul (3rd from right),Vice President of Hemaraj, poses fora picture with Mr. Wirat Kengkarn (2ndfrom right), Deputy Director of the WatNong Fab School, and Mr. SiripongDokmaitien (2nd from left), Chairmanof the Nong Fab Community, duringthe handover of the donation.Hemaraj Donates1 Million Baht forFlood ReliefOn behalf of Hemaraj SIL, Mr. SunthornKongsunthornkitkul (2nd from right),Vice President of Hemaraj, recentlydonated 1 million baht to Mr. ThavornPrommechai (2nd from left), SaraburiProvincial Governor, for flood relief inSaraburi Province.Hemaraj Opens 13 thEastern SeaboardIndustrial CupHemaraj, in association with EasternSeaboard Industrial Sport Club (Rayong),the ESIE Human Resources Club andthe Pluakdaeng Sport Club, recentlyheld an official opening ceremony forthe Eastern Seaboard Industrial Cup2010-2011. Organized now for the13th year, the annual football matchaims to enhance relations and promotegood health among the manufacturersand communities in the EasternSeaboard.

Training ProgramsHemaraj Training Center, Eastern Seaboard Industrial Estate (Rayong)January-June 2011NO. Course No. of Days Course/person (Baht) Dates1 Operation Technique of Forklift Truck 1 day 1,700.00 26 Jan, 11 Feb, 18 Mar, 20 May, 10 Jun2 Safety Off icer: Supervisor Level 2 days 2,100.00 14-15 Feb3 Safety Off icer: Management Level 2 days 2,400.00 14-15 Mar4 First Aid Course 1 day 1,500.00 11 Mar, 13 Jun5 The Explicit 30 Tools for Making Genius Supervisor 1 day 2,000.00 27 Apr6 Leadership 1 day 1,800.00 23 Mar7 Excellent Arts of Supervisory Skill 1 day 1,800.00 25 Jan8 E.Q. for Great Supervisor 1 day 1,800.00 24 May9 Excellent Supervisor for Middle Level and Up 1 day 1,800.00 23 Jun10 7 Supervisor Skills for New Leader 1 day 1,800.00 23 Feb11 Business English Conversation and Writing Program 30 Hours 4,500.001,3,8,10,17 Feb, 1,3,8,10,17 Mar,10,12,19,24,26 May, 2,7,9,14,16 Jun12Business English Conversation with Practice for theTOEIC Test Program30 Hours 4,500.0013 Basic Japanese Conversation Program 30 Hours 4,500.0014 Basic Thai Conversation Program 30 Hours 4,500.002,7,9,14,16 Feb, 2,7,9,14,16 Mar,9,11,16,18,23 May, 1,6,8,13,15 Jun1,3,8,10,17 Feb, 1,3,8,10,17 Mar,10,12,19,24,26 May, 2,7,9,14,16 Jun2,7,9,14,16 Feb, 2,7,9,14,16,Mar,9,11,16,18,23, May 1,6,8,13,15 Jun15 Excel for HR 1 day 1,700.00 1 Apr16 Microsoft Excel2007: Basic 1 day 1,700.00 21 Jan17 Microsoft Excel2007: Intermediate 1 day 1,700.00 21 Feb18 Microsoft Excel2007: Advanced 1 day 1,700.00 7 Mar19 Microsoft Powerpoint2007: Basic-Intermediate 1 day 1,700.00 11 May20 Microsoft Powerpoint2007: Advanced 1 day 1,700.00 8 Jun21 Handmade plastic basket (2 Days workshop) 2 days 1,000.00 5,12 Feb, 5,12 Mar, 7,14 May, 4,11 JunRemarks• Discount 10% for Hemaraj’s Customer (except languages courses on English, Japanese and Thai).• Prices include hand out, coffee break and/or lunch and excluded of VAT.• This is withholding tax of 3 % deductable.• Date and time is subjected to change, please call to confirm.• Please send in the reservation at least 2 weeks before the starting date.• There will be placement test fee of Baht 100 per person for language courses.For more information, please call Khun Wanna attel: 038 955 263, 038 955 282, 038 955 283 fax: 038 955 281 or e-mail: training@hemaraj.com15

18e-mail vas@hemaraj.com

Hemaraj Training CenterHemarajSAVE20-40% onyour next meeting - - For more Info:Standard equipment provided in room includes:Special EquipmentCoffee break and set lunchRoom TypeDescriptionRate (per day)Hemaraj Customer3,50032,50019

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