|
|
| • EXCH RATES |
|
Baht/$ 33.57/60 (Bid/Ask)
|
GOLD |
14,050
+ 50
|
|
Foreign orders overwhelm capacity
NAREERAT WIRIYAPONG
SVI Plc, a SET-listed electronics parts maker, plans to invest up to 750 million baht this year and next to expand its production capacity as part of its plan to achieve total revenue of eight billion baht next year.
About 400 million baht will be spent in the second half of this year on the third factory in Bang Kadi, Pathum Thani with 100 million baht for machinery, said chief executive Pongsak Lothongkham.
Up to 350 million baht would be spent next year on additional manufacturing equipment at the new factory, which is expected to start production in the first quarter of 2009, he said.
''So far, demand overseas has outstripped our production capacity. SVI production would catch up with the orders when the new plant is up and running next year,'' Mr Pongsak said.
This year, SVI expects total revenue to reach about seven billion baht, on par with the annual growth rate of 25% seen in recent years. Sales were reported at 3.34 billion baht in the first half of 2008, up 11% over the same period last year.
''The revenue growth, especially in the second quarter, was driven by strong demand of industrial and telecom products supported by continual growth in the European market,'' he said.
SVI provides turnkey electronic manufacturing services primarily to original equipment manufacturers (OEMs) in the industrial, office automation, telecommunication, audio and video, automotive and medical fields.
European clients make up 56% of its orders, with 9% from the US and the remainder scattered globally, Mr Pongsak said.
''Demand in the second half of 2008 has begun to soften as a result of the significant slowdown in the US market and higher global inflation driven by sharp increases of oil prices,'' he said.
''However, second-half shipments are expected to be on par with or slightly better than those in the first half.''
Their 2009 forecast is upbeat, with output from the new factory enabling SVI to win new business.
Industrial electronics currently make up 60% of SVI's total revenue, office automation 22% and telecom equipment 10%.
''Our production cost, including wages, has remained competitive when compared to Chinese competitors,'' he said.
A majority of SVI's production cost is raw materials, especially integrated circuits, while labour costs account for less than 3%. The company employs 2,600 people, Mr Pongsak said.
In the second quarter of 2008, SVI's net profit jumped 70% year-on-year to 142 million baht on total sales of 1.76 billion baht, an increase of 12% from the same period of 2007.
SVI shares closed yesterday on the Stock Exchange of Thailand at 1.42 baht, up five satang, in trade worth 8.65 billion baht.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Next
