What is the Reason Behind CK and STEC Joint Venture?
What is the reason behind a surprising announcement of the new joint venture, CKST Joint Venture, between CK and STEC?
In 2020, the year was introduced by a surprising announcement of the new joint venture, CKST Joint Venture, between CH.Karnchang Public Company Limited (CK) and Sino-Thai Engineering and Construction Public Co., Ltd. (STEC), by signing the Construction Contract of Water Supply Pipeline and related work at Ram Khamhaeng Road, Soi Ram Khamhaeng 12-Hua Mak Section in conjunct with the total value of the project costs 188 million baht.
The signing contract would not be remarkable, if it was not an incorporation of two big construction companies in Thailand; CK and STEC. It was a new phenomenon of the construction industry circle. Regularly, their projects would be in the form of carrying out by a subcontractor.
Considering CK, STEC and Italian-Thai Development Public Company Limited (ITD) as well are competitors on seizing government project, this joint venture was unpredictable. It would be understandable if it was a big project that requests a complex technology or a huge financial investment, but this was a hundred million baht-budget project with their capabilities, the companies can manage the project without any difficulty. What is the reason behind the deal?
From now on, the competition of the construction field would be more interesting, as recently, the two men are already rode on one horse then anything can happen in the marketplace.
