Outlook slow down in real estate hits plaster firms

The company's revenue target this year is Bt3 billion, which is similar to last year. Of this, about Bt2 billion will come from the domestic market and the rest from exports.

Managing director Wirat Panomchai said the market for gyp¬sum board had experienced no growth in the first seven months com¬pared to the same period last year. The total market size is expected to be about Bt6 billion this year, he said.

"I accept the total market has con¬siderably shrunk in line with the property situation. The fewer proj¬ects property developers launch, the smaller the gypsumboard market becomes. Therefore, a few leading gypsumboard firms cannot avoid fierce competition in the market," he said.

To handle the tough situation, the company has introduced more inno¬vative products such as gypsum plas¬ter, which is used for plastering instead of cement. The condominium market, where the selling price is at least Bt70,000 per square metre, is the company's main target for gypsum plaster.

Currently, more than eight prop¬erty projects in Bangkok's business district are plastered by its gypsum plaster, which is glossier than cement. Gypsum plaster is 10 per cent more expensive than cement.

He said Thailand's gypsumboard market was quite small as the prod¬uct was mostly used in publicserv¬ice buildings such as office buildings and department stores.

The ratio of Thai customers to gyp¬sum board is only 1 square metre per head per year, which is much lower than developed countries. The United States' ratio is 12 square metres per head per year. In Europe, the ratio is 7 square metres per head per year, and in Singapore it is 34 square metres per head per year.