Zebra likely to suspend its expansion plan

The company's original plan was to invest between Bt200 million and Bt300 million this year to increase capacity of kitchenware by 15 per cent from the current 6,000 tonnes per year. It then postponed the investment to next year, due to the expected decline in the market in the final quarter of this year.

Vice chairman of its executive committee Ekachai Youngvanich said yesterday that the company was closely monitoring the fallout from the US financial crisis, which is expected to affect the property business in Thailand in the next quarter.

Kitchenware sales rely on the property sector's growth.

"There is no reason to increase capacity if the market drops," he said.

Ekachai added that sales in the first nine months of this year had grown by more than 10 per cent due to the property market's expansion. But he said he was unable to forecast the kitchenware market outlook in the final three months of the year.

Early this year, Satien Stainless Steel expected annual sales to grow at a double-digit rate from last year's Bt1.2 billion.

Besides, the shrinking US property market will affect Asian kitchenware-makers that export their products to that market. As a result, exporters will shift their focus to other markets, including Asia, in order to survive. This is expected to create fierce competition in Asia next year, he said.

"The financial crisis in the US will have a serious impact on the global market. I can't estimate the picture for the kitchenware business next year right now, but I can say that there might be no growth," he said.

The company sells 70 per cent of its products in the domestic market and exports the rest. It currently utilises 90 per cent of its production capacity.

Ekachai said Satien Stainless Steel would introduce a non-stick pan with a Teflon-platinum coating in the final quarter of this year in order to accelerate sales. The non-stick pan market has grown by about 30 per cent, higher than other types of pan product.

"People nowadays prefer electrical hobs, particularly those who live in condominiums," he said.

Satien Stainless Steel has a 10-per-cent share of a non-stick pan market that is worth Bt200 million. It expects to increase this to 15 per cent by the end of the year.