"We are growing in Thailand. That's all I can say," he said while hosting a media tour of Seagate Technology (Thailand)'s facility at Theparak, Samut Prakan, which employs one-third of Seagate's 13,000 Thai workers. The rest work at Seagate's facility in Nakhon Ratchasima.

Nygaard, who came to Thailand in September, was not here when, in the middle of last year, former deputy prime minister and commerce minister Somkid Jatusripitak voiced concern that Thailand had lost its attraction to foreign investors. He cited a decision by Seagate to expand its facilities in Malaysia instead of in Thailand, as a case in point.

Nygaard said that when Seagate plans a new operation, it visits and reviews the opportunities in several potential countries. On that occasion, Thailand was one of the countries under consideration.

From that review, Seagate decided to invest in a new substrate operation in Johor, Malaysia, and a new Media operation in Singapore.

"This is in-line with media operations already located in Singapore," he said. "By the way, though, we continue to invest significantly in Thailand - for now and for the future."

Nygaard said the fact that the company is still hiring local staff is a symbol of its commitment to Thailand. Since October, Seagate has hired 100 new Thai technicians.

He said the hard drive storage industry is fairly large in Thailand. From July 2005 to June 2006, export revenue from Seagate's Thailand operation was about Bt105 billion.

In its 23 years in Thailand, the company has also developed an infrastructure to support its strong manufacturing base. Besides, Seagate's operations will be enhanced by the government's plan to develop a cluster of hard-disk manufacturers and exporters, he said.

The company's operational strategy in Thailand is to keep its internal supply chain self-contained, within one factory. "This allows us to reduce fabrication, inventory and shipping costs. It also leads to improved quality, because we don't hand materials from one party to another," he said.

Seagate's Nakhon Ratchasima operation produces both components and drives.

In fiscal 2007, Seagate worldwide expects to record revenue between US$11.5 billion and $11.7 billion. This follows $9.2 billion in 2006 and $7.5 billion in 2005.

Last year, the company also acquired Maxtor, a US-based information-storage drive-maker.

Nygaard said the acquisition of Maxtor will not have any implications for the Thai operation at present. But it should strengthen Seagate's base in the industry, which is expecting strong growth because of the need for diverse solutions as rapid development continues in digital technology.

Seagate's performance at the turn of the millennium was flat, matching the cycle of the semi-conductor industry, he said. However, the evolution of digital technology has created demand for storage disks, significantly boosting the company's revenue since the second half of this decade.

The diversification of the technology has led to people creating, storing and protecting digital information everywhere -in the hand, in the home, the car or the office. Consumer electronics will continue to be a fast-growing segment, with products ranging from desktop computers to notebooks and hand-held devices.

Seagate, which has production bases worldwide, regularly evaluates the cost management of its operations in Thailand, along with those in Singapore, Malaysia and China. However, he declined to reveal the outcome of the evaluations.

He said the recent rise in the value of the baht, which pushed up Seagate's operating costs in Thailand, has not reached a level where it is affecting the company's overall operations here.

Asked if Seagate plans to invest in Vietnam, he said it's a matter for future business evaluations. He pointed out that the company evaluates the business performance and competitiveness of its various production sites every quarter.

Jeerawat Na Thalang

The Nation