A subsidiary of the country's second-largest cement producer Siam City Cement Plc, Conwood said yesterday that sales this year were expected to rise by 40 per cent to Bt800 million. The company posted Bt351 million in the first half, up 40 per cent compared to the year earlier.

CEO Suthiphan Wacharopas said about 70 per cent of the materials used for making the firm's wood-replacement products used cement, the price of which has been controlled by the government. If cement prices are raised, the company will have to increase the price of its Conwood products.

He said the company would launch a number of new products in the second half - including stairs, sidings, decorative panels, lap sidings and floors - to reach the sales target.

Of the firm's sales, about 60 per cent come from eaves, 25 per cent from laths, and 15 per cent from other products.

The company will also spend Bt45 million on marketing promotion and campaigns to build awareness among customers.

"Our productivity is stable, so this year we will spend more on marketing to increase our product value," said Suthiphan.

Suthiphan said the value of construction projects in the first quarter had decreased by 18 per cent on year. And in the second quarter, many property developers have shifted to focus more on mid-end projects with a price range of Bt2 million-Bt3 million a unit.

He said if demand for building materials, including Conwood products, continued to decrease, the company would exploit its contingency plan by selling to neighbouring countries: Laos, Burma, and Cambodia.

Conwood has a production capacity of seven million square metres a year. But, Suthiphan said, if the economy improves, it might consider an expansion.

Chalida Ekvitthayavechnukul

The Nation