Chairman Somchai Thaisanguanvorakul said the company planned to invest Bt300 million to expand production capacity if it managed to land the contract. Of the total investment, Bt200 million will be borrowed from banks and the remainder will come from its cash flow.

"Our next step is to be an original equipment manufacturer for global firms on the strength of our professional workforce and advanced technologies," he said.

SNC Former has invested around Bt20 million to set up its own research and development centre, the construction of which will be completed next month.

Meanwhile, it plans to expand its customer base and reduce logistics costs by moving 10 press machines and two computer numerical control units from its plant in Rayong province to its new plant at Bang Na Trad KM23 in the next quarter.

It also expects to boost capacity utilisation from 55 per cent to 70 per cent this year.

SNC Former has plans to spend Bt100 million on new production machines this year in a bid to support its first expansion into the United States and Europe.

The company has targeted revenue growth of 40 per cent this year, Somchai said.

In the first quarter, it posted revenue of Bt797 million, an increase of 49 per cent from the same period last year. Its profit was Bt67 million, up 28.3 per cent year on year.

Ninety per cent of its revenue is from indirect exports because almost all of its customers are international companies, such as Daikin, LG, Denso and Mitsubishi.

SCN Former's five business units manufacture automobile air-conditioning parts, household air-conditioning parts, compressor parts, sheet metal products and food-freezer machinery.

Chalida  Ekvitthayavechnukul

The Nation