President Veerayut Kitaphanich said SAT was negotiating with a Japanese firm to manufacture electronic modules. The deal, which will generate Bt1.2 billion in annual income over a period of seven years starting in 2009, has yet to be finalised.

Veerayut was undeterred by intense competition from two other competitors - one local and the other foreign. The company last touted its wares and credentials to the Japanese in January.

"The Japanese have not confirmed yet but we are 95 per cent sure that our potential is better than the other two. However, we cannot tell when the confirmation will be made," said Veerayut.

SAT has already acquired orders worth Bt1.4 billion this year, translating into Bt263 million annual revenue for six consecutive years. An impending Bt283-million order in 2008 will give SAT an additional Bt70 million annually, also for the next six years. Strategically, according to Verayut, SAT aims to secure 20 per cent of its profits through such long-term contracts.

Verayut is confident the company will outperform the automotive market by 8.5 to 10 per cent this year. Next year, the firm projects 17-per-cent growth, compared to 15 per cent in the industry.

Last year the company reported revenue of Bt4.38 billion and Bt442 million net profit.

Separately, the firm has set aside a fund not exceeding Bt200 million to establish a steel-processing plant. The registered capital of the plant will be Bt200 million, with Bt400 million booked as debts. The capacity of the Bt600-million plant will be 2,000 tonnes per month.