BANGKOK — Few people know that armored vehicles used on the battlefields in 46 countries are made by Thai craftsmen. This is a testament to the hard work and dedication of a family that has striven for this success.
In an interview with “Prachachat Business”, Nopparat Kulhirun, known as “Madam Tank”, spoke about the success of her multi-billion dollar company, Chaiseri Metal & Rubber Co., Ltd., which has grown steadily over the years and benefited from global conflicts.
First Bulletproof Ambulance
A frequently asked question is why the military trusts her company to produce armored vehicles for the battlefield, even though it is a small company from a small country. She says that the smaller size is actually an advantage. The company doesn’t have a complex production process. “We are not ‘nosy”. In every tender they participate in, the customer is always a government.
“We tell our customers that our expertise lies in our local resources: skilled labor, engineers and our status as a global center of automotive production. We do research because we can’t use the same materials in every country as there are differences in terrain and climate.”
“We can produce vehicles exactly according to our customers’ requirements, without predetermined samples or fixed specifications. It is particularly important that we can deliver on time. In the case of the M113 armored vehicles, for example, we won an order from the United Nations (UN) by delivering 15 units within 45 days, even though the competition had promised 60 days. This has created a trusting relationship with the UN, who also recently commissioned us to manufacture the first bulletproof ambulance capable of transporting four patients.”
Billion-Baht Revenue
In 1968, the company started out as a workshop for the manufacture and repair of steering joints for ten-wheeled trucks. At that time, it gained a reputation in the truck industry for being the only company to offer a “work first, pay later” guarantee. The following year, the company began working with the army’s military vehicle repair facilities.
The company then expanded into the production of rubber and metal parts, siding and road wheels. They began developing track connectors for tanks, particularly for the C-100 model, and from 1996 they produced armored vehicles and began researching bulletproof armor in cooperation with Israel and established a research and development (R&D) department.
Today, the company generates around one billion baht in revenue, primarily from repair and maintenance, while revenue from research and production remains a smaller portion. However, they are committed to developing and manufacturing these vehicles to support future growth, as military equipment evolves endlessly. Despite benefiting from the ongoing conflicts in several countries, they don’t support war; rather, they build vehicles to help protect people, enhancing safety on the battlefield.
Madam Tank added that her success wasn’t achieved alone. She has worked hard to raise and mentor her children to excel and support the business. Her eldest son, Kan Kulhirun, now continues the family legacy as Managing Director and Vice Chairman of the Thai Defense Industry Association.
“We have been doing business with the military since 1968, and for over 50 years, we’ve had to fight on our own.”
Benefits Not Matching Promises
Nopparat highlighted flaws in government policies, explaining that the benefits promoted by the Board of Investment (BOI) do not actually support her Thai-made business. Instead, they put her at a disadvantage compared to foreign companies.
She said her company is 100% Thai-owned and uses local materials – car parts, tires, belts, all sourced locally. Although they have to import bulletproof steel because it is not available in Thailand, they have to pay a 5% import tax, plus VAT and an additional 40% duty for hot rolled steel.
In total, they pay up to 60% tax on steel alone, not to mention the special engines and transmission systems imported from the US, which require an export license from the US as well as an import license and contract approval from the Thai Ministry of Defense.
In the meantime, customs classifies these items as “dual-use” goods and taxes the engine at 30% and also the gearbox. Ultimately, they pay tax on every component manufactured in Thailand, while brokerage firms importing fully assembled tanks receive 0% import duty. With these cost differences, it’s just not competitive, and that’s not real support.
They have already applied for concessions from the BOI several times but have been rejected. Now the BOI is enticing foreign investors with tax exemptions of up to eight years for setting up vehicle repair facilities and other tax breaks, even though repair activities should not be favored over manufacturing.
“The BOI should support high-tech, innovative and research-oriented companies that contribute to the country’s development, and not compete with Thai companies. Meanwhile, we, a real Thai company, are being ignored,” she said.
Made-in-Thailand Benefits
She explained that the defense industry provides economic benefits and is valuable to the Thai people. “We should look at new technologies like rain on a mountain: When it rains, the water flows down and benefits the communities along its path. If we produce locally, this benefit spreads instead of relying on 100% ready-made imports.”
“Today, Thailand’s defense industry cannot move forward because there is policy but no practical support. Although Thailand has considerable capabilities, the defense industry is a cornerstone of national security — we need to stand on our own, but it’s just not possible right now.”
She said that Thailand will not be able to become a regional hub unless changes are made. The government should support MIT (Made in Thailand) products by introducing a 10% tax benefit instead of favoring brokers who import fully assembled products to sell domestically. Only products made in Thailand should be eligible for this additional benefit.
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