At the beginning of the year, it targeted Bt23 billion to Bt24 billion in revenues, up from Bt22 billion last year. This target was based on the assumption that the property market would grow 3 per cent this year, but it contracted 7 per cent in the first quarter.

"We have to work very hard this year to reach revenues of Bt20 billion due to the country's economic slow-down and the baht's strength," Pichit said.

He said lower interest rates would not spur the construction business because the rainy season is approaching and it would be unreasonable to expect revenues in the fourth quarter to make up for three quarters of declines.

In the first quarter, revenues shrank 5 per cent from the final quarter of last year and profits declined more than Bt100 million from the same period last year as a result of the baht.

Pichit said one of the company's strategies was to sell more high-value products in neighbouring countries, particularly Vietnam.

It has already set up a fibre-cement plant there and will concentrate on marketing and increasing the number of distributors this year.

Meanwhile, its unit Siam Fibre-Cement yesterday said it would replace asbestos with cellulose and synthetic fibre.

"Many countries, such as the United States, Australia, Japan and Vietnam, have removed asbestos from their manufacturing process because it is assumed it may harm human health," Pichit said.

"We have to spend more than Bt3 billion to develop our production technology. This is partly to bring us in line with the group's vision of becoming a regional leader," he added.

Siam Fibre-Cement targets revenues of Bt6 billion this year, compared with Bt7 billion last year. It accounts for about 30 per cent of the total revenues SCG derives from sales of building materials.

It will spend more than Bt120 million to market new products this year. New products in the domestic market will mainly target home renovations.

Chalida Ekvitthayavechnukul

The Nation