Senior vice president Yongkiat Kitaphanich said yesterday SAT could turn out 200,000 axle shafts per month.

The company targets sales to grow 18 per cent from last year. In the first half of this year, sales were up 16 per cent, but the second half will be better because it is the high season for the automotive industry.

About 35 per cent of sales come from axle shafts, followed by leaf springs at 15 per cent. The remaining sales are from products such as disc brakes, brake drums and exhaust manifolds. SAT plans to expand exports to South Korea by the end of next year. It already ships to Japan, Australia and other Asean countries.

The company, whose main customer is Mitsubishi, will focus on value-added products to boost its revenue next year.

Somboon Group has set up a trading arm called Somboon Trading Group, which comprises Yongkee Co Ltd, Part Point Distribution Co Ltd and APEC Co Ltd.

Verasak Kitaphanich, president of Somboon Trading Group, said his group generated 65 per cent of its revenue from Yongkee, 20 per cent from Part Point and 15 per cent from APEC. The trading company sees this year's revenue falling 10 per cent to Bt700 million, due to fiercer competition from China, Indonesia and India, whose prices are cheaper, and the rising cost of oil.

Customers are keeping their stocks lean due to the variable price of spare parts, which also hurts the company's revenue.

The domestic auto-parts market might shrink by 30 per cent from last year, but Somboon Trading Group's revenue will not drop that much because it has launched more products, Verasak said.

"What we need is time to prove that our products have more quality and value than those cheaper products from other companies," he added.

Other strategies are to add to its distribution channel by selling products to the public sector in the coming year and expanding its customer base in passenger car parts.

Chalida

Ekvitthayavechnukul

The Nation