From modest beginnings, over the years Thai Textile Industry PCL has developed into one of the leading vertical suppliers of high-quality fabrics in Thailand. With an impeccable sense of timing, a manufacturing enterprise has emerged, which is now quoted on the stock exchange and among other activities operates a remarkable yarn dyehouse equipped with systems from Fong’s National Engineering.

Thai Textile Industry PCL (TTI), which is located in Samutprakarn, roughly a two-hour drive from Bangkok, was founded in 1970 as a knitting shop. This was subsequently supplemented by a weaving mill and a dyehouse, and now, as a company with a vertical orientation, TTI’s current activities range from spinning to make-up. Moreover, as its genial Executive Director, Kumjorn Chuenchoochit, (Fig. 1) explains TTI has developed into a listed group with a number of subsidiaries.

TTI turns 90 per cent of the dyed yarn produced into fabrics for shirts and blouses. Production takes place in an extremely clean weaving mill using modern European shaft and Jacquard looms (Fig. 2). The products consist of 100 per cent cotton, cotton-polyester blends, or intimate blends with linen. Roughly 10 per cent of production is employed in slightly heavier qualities for outerwear, while raw fabrics are woven for bed linen in widths of 130“. Accordingly, TTI’s main customers consist of shirt, blouse and bed linen producers.

Step by step                              

KC describes the continual improvement of company performance as being his personal challenge. “We have to remain competitive in an increasingly tough market. To this end, one needs the right partners for both the up and downstream production phases.” KC also sees timing as being a factor of vast significance in every regard.

“Initially everything began on a small scale, the start being made with a knitting shop. Then in the late 1970s, a weaving mill for the production of shirt fabrics was added and in the mid-1980s, there followed the listing on the Bangkok stock exchange. This proved to be an extremely important step in the company’s history and led to the rapid expansion of our enterprise into its current form.”

A focus on essentials

How would you describe your corporate philosophy?

KC:“We concentrate on essentials and want to do what we do best as well as possible. This means avoiding an excessively large product range. For we wish to number among the best shirt fabric weaving companies and offer our customers the correct, desired quality, the necessary value added and first class service. This represents our ideal positioning.”

Wide-base markets               

As Kumjorn Chuenchoochit explains, around 70 per cent of the production from his Group is exported, 35 per cent directly and a further 35 per cent by foreign customers. The remaining 30 per cent of output remains in Thailand for additional processing. TTI deliberately does not have especially dominant export markets, “We wish to keep our production on the widest possible base and not rely on particular markets. Nonetheless, we enjoy an especially high reputation in the Middle East.” This approach is also the reason why there is no outstanding main seller in the product programme. In-house collections are also not created, production being exclusively to customer order.

How do you view the current market situation?

KC:"The problem is not a lack of orders as the demand for dyed yarn goods is positive. Our difficulties are caused by the strength of the baht, which hinders our exports. At present, we are confronted by a Thai currency, which is 20 per cent up on its usual exchange rate against the US dollar, in which we sell 96 per cent of our production. Therefore, we have been forced to raise our prices, which was easier said than done. The baht is a free currency and not tied to the dollar, which is the main reason why it has gained some 20 per cent in value in the past two years.”

Massive changes

Mr. Chuenchoochit, you have been with TTI for many years and have a precise knowledge of the market. What have been the major changes that you have witnessed in the past 5-10 years?

KC:“In the past we had neither so many, nor such good competitors. The margins and therefore the prices were better and not just because of the strong baht. Furthermore, and this certainly does not apply exclusively to Thai suppliers, the demands of the market are constantly increasing. In the past, the standard delivery periods amounted to 4-5 months, whereas today, everything must be in the hands of the customer within 2 months at the latest. Moreover, quality should be continually improved.

This situation will not change in the future, but instead continue to become increasingly problematic. Many smaller suppliers will be forced out of the market and the big guns will become larger, stronger and better. As I mentioned at the beginning, we do not intend to compete with the major companies and this will allow us to spread our risks more evenly. An approach that up to now has clearly been successful.”

The equipment range

You operate exclusively with ALLWIN yarn dyeing systems from Fong’s National Engineering Co. Ltd. How did this co-operation commence?

KC:“Initially, we only had European and Japanese equipment, but when considering an investment in a new dyehouse, we asked ourselves if Chinese or Taiwanese machinery might not be an alternative. We invited Fong’s National to tender and were positively surprised by the standard and competence of the consulting that we received. In 2002, Fong’s was awarded the order and industrial production commenced only a year later. All in all, we now have 61 yarn and beam dyeing machines, which process around 1 million pounds of yarn monthly.

Special machine layout

The entire dyehouse was provided with a remarkable layout. All the ALLWIN yarn dyeing systems for medium to large batches are located on two floors on the left side of the hall (Fig. 3) and in line with TTI’s wishes, the dyeing machines were produced in gradually increasing size. The optically separate right-hand side of the hall (Fig. 4) provides the location for the LABWIN yarn dyeing machines, which are designed for sample and small batches (Fig. 5). As a weaving of coloureds, TTI relies on maximum flexibility and cost efficiency.

In the basement, a sophisticated piping system prevents unnecessary heating of the dyehouse (Fig. 6) and therefore when one walks through the production hall, one barely notices a difference to the temperatures outside.

Kumjorn Chuenchoochit sees the biggest advantages of the Fong’s machinery as being the low liquor ratio, the extremely flexible spindle system and the multifunctional rinsing system (MRI). Moreover, he also points to the price-performance ratio, support during the entire installation period and after-sales services as other positive factors.

Did the layout precisely live up to your expectations?

KC:“Yes, we are extremely satisfied and all our requirements were met. Should we seek to expand at an appropriate point in the future, we are likely to opt for the same machines again.”

Constant improvement

TTI is well known as a leading supplier of shirt fabrics and yarn dyed products. What do you think this is the case?   

KC:“For the reasons already stated, we do not number along the large suppliers, but we wish to be among the best. We not only make massive investments in equipment, but also our employees, as our customers should have confidence in our performance. In this connection, I would like to mention the fact that 80 per cent of our customers have been loyal to us for over 25 years.

We are also of the opinion that excellent teamwork with our equipment suppliers is also vital, as to a certain extent we are at the mercy of the market with regard to our machinery pool. Hence our great satisfaction with Fong’s National.”