Delta junks $50million Indian investment

THAILAND'S Delta Electronics is holding onto its $50 million investment in a new factory in India, and downsizing operations in Thailand.

Delta's executive director Anusorn Muttaraid told the Bangkok Post that the project was not viable to invest in at the moment.

He thought that it might be possible to invest in a factory which produces telecommunications and computer parts when things brighten up a bit on the economy front.

Delta is the largest electronics company listed on the Stock Exchange of Thailand and it is tightening its belt for the recession.

Not only is it postponing its Indian investments, it plans to reduce staff by 400 people in its Thai operations.

The company is expecting a 20 per cent drop in sales this year and Anusorn thinks that the global slump in the electronics industry would continue throughout the first two quarters of 2009 before bottoming out in the third.

He predicted that, after that, there would be a recovery in the high-end of the market. µ

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