By Sucheera Pinijparakarn
The Nation
Firm turns to high-value products, new export destinations
Siam Cement Group subsidiary SCG Cement expects its sales volume to decline 16.67 per cent this year to 15 million tonnes, due to the sluggish economy.
The company is addressing the situation by focusing on boosting sales of more high-profit innovative products and seeking new potential export markets.
President Pramote Techasupatkul yesterday said the company expected domestic sales of 9 million tonnes and export volume of 6 million tonnes this year.
Last year, it sold 10 million tonnes domestically and 8 million tonnes abroad for combined sales revenue of Bt50 billion, up 13 per cent from 2007. Its net profit stood at Bt6 billion, up 10 per cent.
Pramote said sales revenue would likely drop this year but only slightly, due to an expected high revenue contribution from high-value products.
The company also predicts a 10-per-cent fall in domestic cement demand to 22.5 million tonnes this year.
Pramote said the situation should pick up slightly in the second half, thanks to the government's stimulus measures, with demand fully recovering in the next two years.
He said SCG Cement was already focusing on developing and promoting high-value products, in order to tap niche markets. The net profit margin of such products is 10 per cent higher than for conventional products.
He said the sales value of the high-profit products continued to grow. These items enjoyed sales-revenue growth of 9 per cent in 2007, 12 per cent last year and are expected to register 16 per cent growth this year.
"We plan to boost sales-revenue growth to 30 per cent within the next five or six years," he said.
SCG Cement has earmarked Bt180 million for research and development this year.
The company has also shifted its export focus away from the United States, where demand has slumped, to Southeast and South Asia and the Middle East.
Of last year's export revenue, 30 per cent came from South Asia, 30 per cent from Southeast Asia, 20 per cent from Africa and the rest from the Middle East.
The US market contributed 5 per cent of export revenue in 2007 before falling to zero last year.
Meanwhile, SCG Cement this year will complete its Bt5.8-billion project to install waste-heat power-generation facilities at its six cement plants in Thailand and Cambodia as part of its operating-cost reduction. The project will enable the company to save Bt1.64 billion in annual energy costs.
Siam Cement Group subsidiary SCG Cement expects its sales volume to decline 16.67 per cent this year to 15 million tonnes, due to the sluggish economy.
The company is addressing the situation by focusing on boosting sales of more high-profit innovative products and seeking new potential export markets.
President Pramote Techasupatkul yesterday said the company expected domestic sales of 9 million tonnes and export volume of 6 million tonnes this year.
Last year, it sold 10 million tonnes domestically and 8 million tonnes abroad for combined sales revenue of Bt50 billion, up 13 per cent from 2007. Its net profit stood at Bt6 billion, up 10 per cent.
Pramote said sales revenue would likely drop this year but only slightly, due to an expected high revenue contribution from high-value products.
The company also predicts a 10-per-cent fall in domestic cement demand to 22.5 million tonnes this year.
Pramote said the situation should pick up slightly in the second half, thanks to the government's stimulus measures, with demand fully recovering in the next two years.
He said SCG Cement was already focusing on developing and promoting high-value products, in order to tap niche markets. The net profit margin of such products is 10 per cent higher than for conventional products.
He said the sales value of the high-profit products continued to grow. These items enjoyed sales-revenue growth of 9 per cent in 2007, 12 per cent last year and are expected to register 16 per cent growth this year.
"We plan to boost sales-revenue growth to 30 per cent within the next five or six years," he said.
SCG Cement has earmarked Bt180 million for research and development this year.
The company has also shifted its export focus away from the United States, where demand has slumped, to Southeast and South Asia and the Middle East.
Of last year's export revenue, 30 per cent came from South Asia, 30 per cent from Southeast Asia, 20 per cent from Africa and the rest from the Middle East.
The US market contributed 5 per cent of export revenue in 2007 before falling to zero last year.
Meanwhile, SCG Cement this year will complete its Bt5.8-billion project to install waste-heat power-generation facilities at its six cement plants in Thailand and Cambodia as part of its operating-cost reduction. The project will enable the company to save Bt1.64 billion in annual energy costs.
