He said revenue growth of 18.5 per cent this year was the lowest projection, compared with 23-per-cent growth in last year's revenue of $135 million.

SVI plans no big investment or salary increases this year. Its investment budget is set at Bt6 million, of which Bt3 million is for machinery and Bt1 million for software. Bt2 million has already been spent.

Negative factors that could affect revenue include the Chinese government's policy to slow its economy and the United States' military intervention in the Middle East, Poe said.

"We planned to buy a new factory but changed our mind because we did not know what would happen after the coup and what the government's policies would be. We decided that we should not do any expansion and now realise that we made the right decision," he added.

The company's expenses will increase this year as tax privileges from the Board of Investment for its Bangkadi factory have expired. Tax expenses will rise by 12 per cent from last year's figure of Bt7 million.

Of SVI's three factories, the Bangkadi plant continues to provide the highest revenue of Bt120 million a year, followed by Bt30 million from the Chaeng Wattana factory. Although China's Tianjin factory does not yet generate revenue, it is part of the company's marketing strategy and is expected to break even this year. Revenue in the first quarter this year is estimated to be $32 million to $33 million and should eventually increase in the rest of the year before reaching the target of $160 million. The target does not, however, include revenue of $60 million expected from three new customers, Poe said.

Anoma Srisukkasem The Nation