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Published on December 1, 2007

It hopes the efforts will boost its revenue growth next year from estimated flat growth this year.

Managing director Annop Tegajarin yesterday said the slowdown and oil-price hikes had significantly affected the company. The concrete market in Bangkok has experienced a larger impact than the market upcountry .

Meanwhile, the oil-price hike has caused the company to shoulder higher costs. The cost per cubic metre of cement has already increased Bt40, yet CPAC upped its price by only Bt30. Annop said the company would certainly have to lift prices again next year.

In shifting to the upcountry market, he said the market had brighter growth prospects than the big city. The construction process upcountry is also obsolete compared to major cities. The firm sees this as an opportunity through teaching modern construction methods, many of which require its products.

CPAC plans to expand pre-cast and ready-mixed plants upcountry, via its own investment and franchisees.

SCG president Pramote Techasupatkul said the production of these plants varied depending on its franchisees' capabilities, while its own CPAC's plants would help make products that require complicated processes.

To develop new products and technology to support its franchisees, the CPAC Pre-cast Concrete Technical Centre was launched yesterday at its third precast concrete plant in Chiang Mai. The company plans to open the centres in its other two plants, in Bangkok and Saraburi, as well as new precast concrete plants next year, including Chon Buri and Khon Kaen.

Three strategies to save its logistics costs consist of finding closer sources for sand and stones, using more rail and ship transportation, and investing in small CPAC truck mixers .

Nitida Asawanipont

The Nation

CHIANG MAI