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Published on August 7, 2007

SNC Former will sign an agreement to form an alliance with Japan-based Santech for the manufacture of electronic parts.

The companies will join hands to develop moulds and electronics parts and exchange know-how, SNC chief executive Somchai Thaisanguanvorakul said yesterday.

SNC produces and supplies parts to the air-conditioning and automotive industries. Somchai said the company would ink deals next month with three original equipment manufacturers from Japan, South Korea and the US.

"If the company receives orders from the three customers, our sales revenue would rise to Bt6 billion. For this year, our revenue would jump 40 per cent from Bt4 billion to Bt5 billion in the previous year," he said.

Typically, the first and fourth quarters are peak seasons for the company, so SNC needs to accelerate finishing the deals with the three new clients, he said.

The appreciation of the baht has not had an adverse impact on the company as its exports account for only a small portion of its revenue.

The company has borrowed Bt600 million to buy new machinery and reserve working capital for handling new orders. Should working capital not be sufficient for expansion, the company may recapitalise next year.

Regarding its plan to list subsidiary SNC Pyongsan Evolution on the stock market, Somchai said the plan would be delayed until SNC can create a new main source of income as SNC Pyongsan is now SNC's main contributor.

SNC reported a consolidated second-quarter net profit of Bt61.93 billion, up from Bt40.25 million in the same period last year.

Siriporn Chanjindamanee

The Nation