Somboon Advance Technology, the country's largest axle-shaft manufacturer, expects the recovery of the auto industry will help the company turn in double-digit profit growth this year.

"In general, orders in the first quarter will not be more than the fourth quarter of the previous year. But the return of orders from automobile-makers this quarter confirms that the auto industry has returned to a bright spot," SAT president Verayut Kitaphanich said yesterday.

The company has seen its capacity utilisation rise to 90 per cent this quarter from 80 per cent last quarter.

The country's production of auto parts this year is expected to grow by 15 per cent against a drop of 30 per cent last year, he said.

The company believes its sales this year will expand by 20-25 per cent, while net profit growth will reach double digits from a single digit in 2009.

This year is a year of take-off for the auto industry before it reaches full recovery in 2012. The global economy has started revving up this year and a full rebound needs one to two years, he said.

SAT will start supplying coil springs for Nissan's eco-cars this year and drum/disc brakes for Honda's eco-car next year. The deal to provide auto parts to Suzuki under the eco-car project might be known late this year, he said.

The growth of the agriculture industry this year is another positive factor for the company's sales. The injection of government funds is to stimulate the economy benefits farm equipment as well as tractors.

SAT supplies shafts to Siam Kubota, the country's largest tractor-maker. Sales to Siam Kubota will increase to 15 per cent of SAT's sales this year from 5 per cent last year.

Sales to Siam Kubota next year will accelerate by 20 per cent, Verayut said.

The company will budget more than Bt100 million and hire 200 more staff to expand production for Siam Kubota.

SAT's stock yesterday closed at Bt13.80, up 1.47 per cent from Tuesday.