Managing director Panom Pimsaeng said yesterday that business had picked up because many local operators revived their investment plans when interest rates came back down.

"Most of them think that they should invest during the worst times to serve demand when the economy starts recovering," he said.

Some industries such as printing, electronics and auto parts are still showing impressive growth this year, he said.

The total market for ready-built factories is about Bt200 billion, but more than half of that is generated from expansion projects, and the rest from new projects.

"The segment of expansion projects is expected to keep growing, but new investments are hard to find," he said.

Although prices of inputs - particularly construction materials - will rise dramatically this year, FCI can maintain its profit margin at last year's 20 per cent by focusing on research and development to cut production costs and add value to its factories.

About 80 per cent of its revenue comes from sales of ready-made factories and the rest from performing related services, such as installing infrastructure systems and machinery.

A Bt15-million factory in Rangsit will start producing made-to-order equipment for industrial plants at the end of next quarter.

The new factory will support FCI's expansion to China and Vietnam within a few years, as demand for ready-built factories there is heating up.

Chalida Ekvitthayavechnukul

The Nation