MAI-listed Eureka Design Plc is diversifying into automation, software and trading to offset a slowing automotive market.
Narakorn Rachapolsitte, Eureka's chief executive and managing director, said the company planned to spend 375 million baht over two years, mainly on factory renovation in Pathum Thani's Lam Luk Ka district, international expansion and mergers and acquisitions.
Eureka recently established subsidiaries Eureka Automation and Eureka Trading, expected to generate annual revenue of 70 million and 50 million baht, respectively.
A joint partner has already been found for Eureka Automation, while a partnership deal for Eureka Trading is expected soon with a Japanese investor.
Eureka designs and produces automotive assembly and testing machines including jigs and fixtures for use in factories.
It also provides modification and repair services for machinery and procurement of parts and factory supplies.
Eureka's main customers are Japanese automotive companies Toyota, Honda, Yamaha, Isuzu, Suzuki and Mitsubishi, plus major auto-parts makers.
Mr Narakorn said Eureka planned to open a branch in Vietnam in next year to capitalise on that country's promising growth.
The company already operates in Indonesia and India.
It expects revenue will top 800 million baht next year, up from only 310 million this year, well below the target of 500 million.
Eureka achieved revenue of 403 million baht last year and 306 million in 2012.
For the first nine months of this year, revenue fell by 22% year-on-year to 227 million baht for a net loss of 14 million.
Lower-than-expected 2014 revenue is blamed mainly on the political problems and shrinking car production.
In a related development, Eureka said it raised its registered capital by 78.6 million baht to about 164 million.
EUREKA shares closed yesterday on the MAI at 3.86 baht, up 38 satang, in trade worth 28 million baht.