Siam Cement Group (SCG), Thailand's top industrial conglomerate, will spend 3 billion baht to build a new factory to produce fibre cement, aiming to lift its annual production capacity of the wood substitute products to 90 million square metres within two years.
Siam Fiber Cement Co, a subsidiary of SCG Building Materials, will construct its fifth plant in Nong Khae in Saraburi province to serve growing demand for environment-friendly fibre cement, said managing director Panthep Supachaiyakit.
The new factory is expected to be operational in the first quarter of 2013.
Last year, the company spent 1.3 billion baht for capacity expansion of Siam Fiber Cement which controls a 40% share of 20-billion-baht domestic fibre cement market. Its revenue grew 12% over 2009 to 7.8 billion baht, Mr Panthep said.
"We are confident that the market will continue to expand significantly and our focus remains on innovative products that are good for preserving the environment," he said, adding that sales were expected to expand by 8-10% this year.
Only 6% of the company's revenue is generated from exports to nine Asian countries led by Laos and Cambodia. Shipments surged by 30% in 2010.
Exports will be increased in line with SCG's strategy to become the leader in the Southeast Asian market by 2015 when Asean becomes a single market, he said.
As the overall market continues its substantial expansion, the company expects competition will intensify. New quality products would be key to staying ahead of competitors and maintaining a leading position, he noted.
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