Thai shipyards anticipate high demand for offshore vessels

Italthai Marine, a local shipbuilder and repairer under the Italthai Group in Thailand, is optimistic of achieving 200% revenue growth this year thanks to persistently high demand for offshore supply vessels in the crude-oil production business. Assistant planning and control manager Sanit Jomsangawong said oil firms, particularly those in the Middle East and Europe, were maintaining their investment in crude exploration and production, despite energy prices having fluctuated wildly in the past two years. As a result, the oil companies require more offshore supply vessels to support their expansion.

“We expect our sales volume will rise by 20-30% this year. With such dramatic growth, we plan to spend at least Bt100 million to expand our capacity to serve surging demand in the future,” he said.

Italthai Marine has a facility at the mouth of the Chao Phya River in Samut Prakan province, with a capacity to build and repair vessels of up to 5,000 gt. On the overall industry, he said Thailand built vessels that were 30-40% more expensive than other countries in Southeast Asia such as Vietnam and Singapore, because 90% of the equipment used is imported.

However, foreign customers are still interested in purchasing vessels from the Thailand due mainly to the skilled workforce and better-quality products. “If public agencies such as the Board of Investment could cut the tax rate for imported equipment or build up more local potential industrial suppliers, it would boost the country’s competitiveness for shipbuilding and repairing,” he added.