Executive vice president for marketing and sales Chantana Sukumanont said the company wanted to increase its cement prices Bt300 per tonne, which is still under the ceiling allowed by the government. But she emphasised that the company would increase prices gradually.

She said the cost of oil, fuel and electricity, which amounts to a combined 85 per cent of the company's production expenses, had increased considerably. Moreover, the company has had to tighten its belt in terms of spending and investment.

The price of cement is currently around Bt1,900 per tonne, with the government declaring a maximum price of Bt2,200 per tonne. However, SCCC cannot increase its prices suddenly, because of the high competition in the market.

Chantana said the company had set a sales target of 12.5 million tonnes this year. In the first half, it sold 4.2 million tonnes on the local market, down from 4.4 million last year, while the volume of international exports was 2.5 million tonnes, up 9 per cent on year.

The company recorded first-half revenues of Bt12 billion, up 6 per cent on year.

It made a net profit of Bt2.17 billion, down from the Bt2.37 billion recorded for the

corresponding period last year.

Chantana said company revenues rose because the company had increased its prices Bt100 per tonne earlier this year. The net profit fell due to competitive domestic pricing and higher energy costs.

Managing director Leo Mittelholzer said that in order to maintain its domestic prices, the company needed to crank its production levels to maximum capacity and increase exports.

He said the country's total domestic sales normally fall in the second half of the year. The company thus expects to export more to Vietnam and Dubai, which are its main export destinations at present.

Mittelholzer said the company hoped to export specialist cement products to the US this year.

He added that everyone was looking forward to an improvement in the market next year, thanks to the government's planned mega-projects. But he said it was still unpredictable, and the company must remain focused on margins and cost management.

SCCC has also established "EcoSiam", a new business unit dedicated to improving its competitiveness through waste-management services and increasing the volume of alternative fuels used.

Chantana said the company paid Bt200 million for a 30-year concession in a sand-mine in Ayutthaya. It also plans to expand operations in its stone-mine.

The sand-mine started operations this month, while the stone-mine expansion is under negotiation.

Mittelholzer said the company had invested in the two mines to control the cost of raw materials and expand its product line for its customers.

Chalida Ekvitthayavechnukul

The Nation