project referen > Construction

VPE and the Construction Work

Since the inception of Company in 1961, VPE has been doing some of construction work as part of business, however the size of construction work was relatively small. In early 1980s, VPE had participlated in larger construction projects, mostly the goverment work in construction of oil tank farm for power plant, and supply and installation of under ground water supply tunnel projects. In private projects, VPE was involved in supply and construction of several cement plants. Not until the middle of 1980s, VPE had opportunity to work in the frist petrochemical project in Thailand as a subcontractor for mechanical work to the German engineering company. It allowed opportunity to learn new skill in chemical plant construction and project management which no other Thai company ever had the skills and experience before. After successfully completed the project many lessons had been learned, and opened door to numerous construction projects in the following decade. Up Untill middle of 2000s, majority of company's revenure came from construction work but soon after all the new projects were suspended by court order due to environmental issue, resulting in the disapperance of construction work. What was left in construction work following court order was limited to plant upgrade and capacity expansion of existing plant. The size and work volume is less attactive to large construction companies to be profitable, so smaller construction companies came in to fill the void. For VPE, the major source of revenue has been shifted from construction to shop fabrication work for export which, fortunately, is enough to compensate for the revenue loss in construction, but does not generate the growth.

 

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