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![TMCNet: SVI to build new plant to meet orders [Bangkok Post, Thailand]](http://images.tmcnet.com/siteart/invisible.gif)
SVI to build new plant to meet orders [Bangkok Post, Thailand]
(Bangkok Post (Thailand) Via Acquire Media NewsEdge) Nov. 17--SVI, a full turnkey electronics manufacturing services (EMS) company, has stepped up its investment budget next year to 350 million baht to build a new plant to cope with rising demand.
The amount marks a 40 percent increase from the company's normal investment budget of 200-250 million baht a year, said CEO Poe Lothongkam.
He told investors at a briefing yesterday that the third factory will begin production in 2010 and should help drive sales growth by 10 percent to 15 percent next year.
SVI reported third-quarter revenues of $43 million (1.46 billion baht), a decline of 25.8 percent year-on-year and of 9 percent from the previous quarter.
The company told the SET that while bookings in the third quarter rose from the previous quarter, raw-material shortages across the supply chain hurt production and sales. Net profit for the third quarter totalled 139 million baht, down 34 percent year-on-year due to a decline in revenues.
"The company saw more orders, particularly at the end of the third quarter, but we simply couldn't meet the demand due to the lack of raw materials," he said.
To address the problem, SVI is expanding its supplier base to Taiwanese and US electronics firms in addition to broadening its existing supply base in China and Europe.
Mr Poe said the firm's profit in the fourth quarter should continue to rise, with a full recovery seen by the first quarter of next year.
The company also planned to hold roadshows in Europe and Asia to promote its prospects in 2010 after the release of first-quarter results.
Shares of SVI closed yesterday on the Stock Exchange of Thailand at 2.02 baht, down 2 satang, in trade worth 8.5 million baht.
To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.
Copyright (c) 2009, Bangkok Post, Thailand
Distributed by McClatchy-Tribune Information Services.
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