Sino-Thai eyes record backlog of Bt34 bn

Construction News

Sino-Thai Engineering & Construction, the country’s third-largest contractor, expects a backlog worth about Bt34 billion by the end of the year, the highest since the company’s establishment 48 years ago.

President Vallop Rungkijvorasathien yesterday said the backlog included the fourth contract of the Blue Line mass-transit project worth Bt13.38 billion, and a Royal Irrigation Department project worth Bt1.2 billion. Both contracts are expected to be signed this quarter.

The Bt34-billion backlog will gradually be booked as revenue over the next two to three years.

He said Sino-Thai would bid for two contracts, worth Bt44 billion combined, of the Red Line electric-train project from Bang Sue to Rangsit.

Besides, it is interested in the construction of two power plants: in Jana, in Songkhla province, and Wang Noi district in Ayutthaya province, together worth more than Bt10 billion.

For private-sector projects, the company will bid to construct the flagship store of Ikea, the Swedish furniture chain, on Bang Na-Trat Road.

The contracts of all projects in which the company is interested, with the exception of the two Red Line contracts, are expected to be finalised this year.

“This is an upturn period for the construction industry. Sino-Thai is not the only company to benefit from this trend. We believe our performance next year will be better than this year, as we expect to win some projects for which we are bidding in the second half of this year,” Vallop said.

The president said the company estimated revenue this year coming in at Bt9 billion, down from Bt12 billion last year because of the delay in signing contracts for some state projects.

It expects revenue next year to reach Bt12 billion again, based on the estimated backlog of Bt34 billion this year.

“We could generate revenue of Bt15 billion in 2011 if we can win at least one project from the bidding in the second half of this year,” he said.


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