In recent decades, Van Leeuwen Thailand has become an important part of our business in Asia. General Manager Michael van Etten attributes our recent successes to achieving a new balance between projects and MRO contracts.
After graduating in Rotterdam, the Netherlands, Michael van Etten decided to pursue a career in Thailand. ‘My mother is Thai, and I’ve always wanted to work here,’ Michael explains. ‘I was given an opportunity at Van Leeuwen Thailand, and I have since been working in Bangkok for ten years. I started as a trainee and quickly progressed to positions such as sales executive and supply chain manager. Currently, I am General Manager of our Thai operations.’
Shift in focus
‘For decades, Van Leeuwen Thailand primarily focused on projects,’ says Michael. ‘Our financial success was heavily dependent on securing large projects. However, in recent years, my team and I have shifted our focus to distribution and securing major MRO contracts. We now have MRO contracts with all refineries in Thailand and the majority of petrochemical plants. Project business remains another area of expertise for Van Leeuwen Thailand, primarily involving collaboration with Engineering, Procurement, and Construction (EPC) companies for either new plant construction or plant expansion projects.’
Significant milestones
‘In 2023, we achieved several significant milestones,’ Michael continues. ‘We received substantial orders for boiler tubes from sugar-producing companies in Thailand. Additionally, we secured a contract with PTT Global Chemical, Thailand's largest petrochemical company, thereby solidifying our position as a leading distribution player in Thailand in terms of MRO contracts. No other company in Thailand has managed to secure MRO contracts with all companies within the PTT Group, but we managed to do just that.’
Renewable energy
Looking ahead to 2024, Van Leeuwen Thailand will renew a number of current MRO contracts. ‘Due to our many years of experience in the MRO business and successful contract execution, we know what the customer expects from us in terms of service level and the reliable delivery of the most common items. With this knowledge, we have a competitive advantage and aim to acquire additional MRO contracts, which is important for our Distribution business. One of the challenges and personal goals for 2024 is to achieve an MRO contract for our heat exchanger and boiler tubes in Thailand. Another significant development is the shift in the traditional oil and gas market toward LNG and renewable fuels and raw materials. This offers new possibilities, because we are experienced in this area and well-positioned to stay ahead of the competition. Since we supplied materials for a major project in 2020, the Nongfab LNG terminal for PTTLNG, we know what is required in terms of specifications and will align ourselves with the same long-term partners to be engaged in the early stages of any new upcoming LNG terminal project.’
Connecting worlds
Michael views Van Leeuwen's centennial theme ‘Connecting Worlds’ from different perspectives. ‘First, I am bicultural. I was raised in the Netherlands, but have been living and working in Thailand for many years, and have mastered the language verbally and in writing. English is my third language, enabling me to communicate with diverse groups of people. Moreover, at Van Leeuwen Thailand, we all speak the same project business language: understanding the importance of flexibility, urgency, and familiarity with the customer's operations. Customers have to be able to rely on our ability to deliver, not just the product, but also exceptional service and reliability. We have to exceed their expectations.
In another sense, we are bridging the worlds of suppliers and customers, backed by Van Leeuwen's solid reputation. It is special to me that a company that began as a one-man business a century ago today is a worldwide household name, including in Thailand.’
Van Leeuwen in Thailand
Van Leeuwen Thailand was established on July 10, 1991, and its warehouse was opened on April 9, 1996, in Bo-Win, Chonburi. The warehouse was built at the time when our current CEO, Joop Sassen, was General Manager in Thailand. The warehouse is strategically located close to the Laem Chabang port, which is the biggest seaport in Thailand. Most of the refineries and petrochemical plants are located in Chonburi province and the neighboring province Rayong, with the Thai Oil refinery in the Sriracha district being the closest to our warehouse. Thai Oil has been one of our long-term customers for the Oil & Gas industry in Thailand.
In 2023 we incorporated the former Benteler Distribution Thailand office into our company, creating a single business entity with 43 staff in two locations; our office in Bangkok and our warehouse in Chonburi.
Biobased plastics for Corbion
Dutch-based Corbion, together with TotalEnergies has built a PLA plant in Rayong, Thailand. PLA is a biobased and biodegradable polymer made from renewable resources, with lower CO2 emissions compared to traditional plastics. Michael van Etten is particularly proud of the contribution that Van Leeuwen has made to this plant. ‘Having good cooperation with a Dutch company gave us the opportunity to bid on this project.
The complexity of this project primarily arose from the urgency to deliver materials for seven different areas of the plant. Each area had its own tight delivery schedule, with the first deliveries already expected a few days after contract award. Plus, we had to deal with many suppliers domestically and overseas. We delivered beyond the customer’s expectations, which resulted in a letter of appreciation, making myself and the team proud, and well-positioned for our next project in Thailand!’
