Hana gets more productive
Hana Microelectronics, a leading regional manufacturer of electronic components, has spent US$35 million (Bt1.22 billion) to upgrade plant productivity in an effort to cope with the baht's appreciation, which has cut deeply into its dollar-denominated revenues.
"The baht's appreciation of 10 per cent against the greenback will cut the group's profit by about Bt120 million on a quarterly basis," said vice president and general manager Issra Sivakul. "We realise we cannot control the baht's fluctuation, and hedging only slightly reduces the effect. What we must do now is force each plant to increase its current productivity 20 per cent and maximise the use of our human resources," he said. At present, 60 per cent of Hana's revenues are in dollars and the rest in baht. Last year, Hana's revenues in dollar terms totalled $394.6 million, up 31 per cent from 2005. But in baht terms, revenues of Bt15 billion amounted to only a 24-per-cent increase. Its net profit in dollar terms rose 9 per cent, compared with only 3 per cent in baht terms to Bt2.204 billion. On Wednesday, Siam Cement Group chief Kan Trakulhoon also highlighted the need to increase productivity to cope with the baht's appreciation. He noted that the strengthening of the baht against the greenback meant the disappearance of Bt700 million to Bt1 billion from the group's annual revenues, of which 30 per cent comes from exports. Issra said Hana would start importing more raw materials if the baht rose to the 32-33 level against the dollar. Meanwhile, it plans to spend $25 million this year to set up another plant in Lamphun province, to expand its product line. The expansion will support new technology like touch-screen displays, flash mobile phones, mini-microphones for mobiles, online banking access and ink-pressure sensors. The plant should be completed in May, with revenues from the expansion realised in the third or fourth quarter. In China last month, Hana moved its Shanghai plant to Jiaxing, due to the cheaper cost of living. The plant in Jiaxing will have a production capacity of 1.446 million pieces a day, Issra said. He said the Chinese plant offered lower-cost production, due to lower labour wages, while plants in Thailand provide high-quality products, thanks to their advanced technologies. Hana produces three types of electronic parts: printed circuit-board assemblies (PCBAs), integrated-circuit (IC) packaging and light-emitting diodes (LEDs). Of total revenues, 49 per cent comes from PCBAs, 37 per cent from IC packaging and 14 per cent from LEDs. Issra predicted the PCBA market would grow 16 per cent from last year, the LED market 20 per cent and the IC-packaging market 5-6 per cent. Chalida Ekvitthayavechnukul The Nation
|
