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Cutting edge of testing

EXECUTIVE Q&A

Cutting edge of testing

SHAREINVESTOR

Thai Plc (TNDT) is a technical service company established in 1982 by a group of academics, experts, and technicians in response to the growing demand for NDT-related services, especially for engineering inspection and of , , boilers, piping and structures in the fields of , , , , offshore, bridge and building construction, and other . TNDT became a public company on April 9, 2007, and listed on the Market for (MAI) on Sept 28, 2007. Founder and managing director Chomduen Satavuthi discusses the company’s business and outlook.BUSINESS

Can you explain TNDT’s business model?

TNDT provides and testing by means of non- (NDT) in Thailand and the region. For the of our business, we focus on exceeding our customers’ satisfaction expectations and on continuous by while assuring reliability of our services to our customers as cost-effectively as possible. At the same time we promote the efficiency, ethics, innovation, quality and safety in our profession as our core values.

What does NDT involve and why would a company require it?

NDT includes many testing methods for examining the integrity of an object, material or system without impairing its future usefulness. Since NDT has evolved into a highly technical and specialised profession, it is used throughout industrial world as an for quality control. We believe the roles of NDT and engineering inspection are becoming more important as demands and expectations for public safety are apparent everywhere.

Which industry and region does TNDT currently operate in?

We serve various industries such as , , , , oil and gas and transmission pipelines, both onshore and offshore. Although our services are based in Thailand, the components and structures inspected by Thai NDT are for overseas projects, for example the Qatar airport or a manufacturing plant in Madagascar.

What effect has the current political situation had on TNDT’s business?

Politics has had little effect on Thai NDT’s business, as NDT is not only related to an industry’s capital-expenditure plan. In fact NDT is always required by regulations in almost all industries for preventive maintenance and in-service inspection as infrastructures or plants age.

What effect does the current global slowdown have on TNDT’s business?

Of course there has been some effect from the global slowdown and also from inflation. We see direct impact in cost of manpower and consumable items but we have managed the situation by enhancing our manpower efficiency and professional capabilities. Our NDT business has increased continuously and will grow at around 30% annually.

How does TNDT go about finding quality engineers?

NDT inspectors are specialists who learn through training and experience. We recruit various technical and science graduates from universities. Then we provide both in-house and outside training and build up on-the-job training until they are qualified and certified. Fortunately, NDT courses are now available at some local schools including Chulalongkorn and King Mongkut’s Institute of Technology Thonburi.INDUSTRY

What differentiates TNDT from its competitors?

TNDT has 26 years of experience and a strong track record for reliable and premium service that builds confidence with customers. Our strong team includes highly experienced and qualified technicians and engineers at each level meeting the requirements to offer the services. We have always been in conservative in expansion and kept enough funding to support growth, so we have never faced interest burdens. Even new investment to add value to services and assets comes from internal source of finance.

How will TNDT manage the coming slowdown in capital expenditure by petrochemical firms?

Because Thai NDT does not focus specifically on one industry, even when capex spending slows, there is plenty of work to be done in the petrochemical, oil & gas and other industries. For example regulations are modified and updated continuously in various industries as regards safety, social and environmental concerns, and NDT is required for these procedures. To give a simple analogy, when you buy a car it needs to be checked every 10,000 km; the business we operate is similar, thus we have ongoing work.MISCELLANEOUS

What are the biggest risks facing your business today?

Our biggest issue today is manpower. Currently we have 60 engineers and there is plenty of work available but we need to be able to expand our team of engineers. We take great care to ensure our employees are well taken care of and well trained.

Where do you see TNDT five years from now?

We see TNDT as a fully integrated NDT and inspection services company for any industry. Infrastructure represents great potential. In developed countries, road and building infrastructure must be inspected periodically. In Thailand such regulations do not yet exist because the road infrastructure is relatively young, but eventually rules will have to be enacted and NDT services will be required.

The Executive Q&A Series is presented by ShareInvestor, Asia’s leading financial internet media and technology company, and the largest investor relations network in the region. The interview was conducted by Pon Van Compernolle, managing partner of GVC Capital, an investment advisory firm focused on small- and mid-caps in Thailand. For more information, e-mail pon@gvc-capital.com or howard@shareinvestor.com or visit http://www.ThaiListedCompany.com

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This entry was posted on Friday, October 3rd, 2008 at Friday, October 3, 2008 and is filed under Business News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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