Australian firm moves manufacturing to Thailand

Autumn Solar, the NSW-based supplier and installer of heating for swimming pools and spas, plans to move its manufacturing operations in Australia and China to Thailand within two years.
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 Ulladulla. However, NSW South Coast location is problematic for exports, leading the company decided to look overseas in order to expand its export markets and save on transportation costs.
Autumn Solar is Australia's market leader in heating installations for swimming pools and spas.
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.
Merrett explained "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."
Merrett added that the joint venture would take advantage of the Thailand-Australia Free Trade Agreement (TAFTA), which is set to cut export and import taxes to zero from next year.
Autumn Solar's turnover was $25 million last year, $5 million of which came from exports.
"I expect to increase export sales by 15% 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% within five years," Merrett added.

http://www.autumnsolar.com.au/