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The innovative products can command plusher margins than its core product, lightweight concrete blocks, managing director Payont Sakdejyont said yesterday.

The company's Q-CON brand is the market leader.

Q-Con posted Bt720,000 in net profit for the first quarter after suffering net losses of Bt81 million and Bt107.63 million in 2006 and 2007, respectively.

One of two new products is set to launch this month.

The steel reinforcement product, which was designed to be a component of built-in bathroom and kitchen counters, will be sold to developers as a package.

"This product can replace steel and wood with high prices," Payont said. If it is successful, new products will be developed for other market segments.

Kitti Soonthornmanokul, vice president for sales and marketing, said the gross profit margins for the new products would be better than lightweight concrete block's 23 per cent in the first quarter. The company targets revenue this year at Bt1.04 billion from existing products.

The company's lightweight concrete block plant is running at 50 per cent of capacity, so the spare capacity will be used to produce the steel reinforcement product.

The soil improvement product, which prepares acidic soil for cropping, shows potential for distribution to farmers across the country.

"We would like to develop new products in order to go beyond our rivals. There is a large market for soil improvement and we will market the product by taking it to farmers for testing. The company has a future to grow and we want our shareholders to trust us," Kitti said.

Q-Con booked losses in the past two years because sales declined due to the economic slowdown and political turmoil, which dragged the property sector down. Raw material costs had also gradually increased but the company could not raise its prices.

The company plans to switch its production fuel from heating oil to natural gas for vehicles (NGV) this year. The company forecasts that NGV will account for 2 per cent of production costs.

Last year, overall demand for lightweight concrete blocks was 11 million square metres against supply of 26 million square metres from six companies, Kitti said, adding that Q-Con produced 12 million square metres last year but sold 6 million square metres.

The company hiked its prices 5 per cent early this year and again 5 per cent last Sunday, in order to cover increases in raw-material costs of 6 per cent from last year.