SCG banks on petrochemicals for growth
The Siam Cement Group (SCG) is maintaining its sales-growth target at 5 per cent, banking on its growing petrochemical business to help offset sagging demand for cement.
President Kan Trakulhoon said yesterday that in the first quarter, the group's gross spread for petrochemicals stood at US$682 (Bt23,800) per tonne, though that is expected to retreat to $580 to $590.However, the company's cement products business continues to underperform due to 6-per-cent decline in cement consumption in the first quarter. That has prompted the company to focus more on exports. The company expects to ship 7.5 million tonnes of cement abroad this year, up from 7 million last year. Kan hopes that cement consumption would pick up in the second half when state agencies are expected to spend their budgets for utility projects. Kan sees the group's pulp and paper business growing 5 per cent this year but declined to confirm if the company would be able to make a higher profit from the business, due to rising costs. Recently the company's board approved a Bt855-million investment in the corrugated container business through SCG Paper. The plant, which is expected to be up and running in Rayong by the middle of next year, will have sheet board capacity of 62,000 tonnes per year. The conglomerate's investment budget of Bt30 billion this year, up from Bt20 billion last year, focuses on the Asian market. It is also considering investing $200 million in Indonesia for either cement or construction-material production. - The Nation
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