SCG Group plans to raise its revenue target for this year as the export market and petrochemical industry are growing faster than expected, although the cement market will show flat growth, president and CEO Kan Trakulhoon said.
Shipments to Asean, China and other countries will boost the group’s export revenue from 26 per cent of the total last year to 27-28 per cent this year. This is thanks to the global economy recovering, especially China, and the weak baht in the first half of this year, he said.
“Although the baht is strong at this time, it has little impact on our export markets,” he added.
Meanwhile, the demand for petrochemicals is increasing, another boost to its revenue. However, Kan declined to disclose how much the group would raise its revenue forecast – that will be finalised when the company announces its second-quarter financial results next week.
The group previously estimated revenue of Bt477 billion this year, up 10 per cent from last year’s Bt434 billion.
AUTO EXPORTS INCREASE
Despite the sluggish recovery of the export sector, auto shipments continue to expand, but still by not enough to counter the reduction in domestic demand for cars.
The industry has been forced to brake this year’s production target from 2.4 million units to 2.2 million.
The target for domestic sales has been lowered from 1.2 million units to 1 million, which represents a drop of 25.1 per cent or 335,754 units from last year.
Surapong Paisitpattanapong, deputy chairman and spokesman of the Federation of Thai Industries’ Automotive Industry Club, said yesterday that lower domestic demand, the end of the government’s first-car tax-relief programme and the delay in government and private investment projects had contributed to the change in the production target.
However, this new figure is still higher than the forecast for 1.8 million units before the big flood in 2011, and domestic demand is expected to shift into forward gear next quarter.
“The economic recovery, payment for farmers under the rice-pledging scheme and return of investment will increase revenue in other industries and put more money in people’s pockets,” he said.
TRANSPORTATION COSTS STEADY
The Transportation Fee Index for roadways last quarter increased slightly by 0.3 per cent from a year ago. Amparwon Pichalai, director of the Commerce Ministry , Ministry’s Trade Policy and Strategy Office, said yesterday that transportation costs were unchanged due to moderating domestic demand, passing of the rice harvest season, freezing of diesel price and slowing of agricultural exports.
THAI GYPSUM UPBEAT ON H2
Thai Gypsum Products Public Company Limited, the manufacturer of gypsum innovations under the brand “Gyproc,” has reaffirmed its positive outlook regarding market conditions in the second half of 2014 with its commitment to build a new warehouse/distribution centre in Surat Thani province. Following its strategic plan to achieve a 5 per cent growth this year before the introduction of AEC, the company continues to expand its national footprint following the opening of the 5th Gyproc Centre, launched recently in Phuket.
Thongchai Kamolpattana, commercial director, said, “Gyproc aims to become the market leader in gypsum production following AEC integration.
As Thailand is located centrally within the region, we believe many foreign investors will be attracted to invest in the country, whether by development of properties they own or the expansion of their regional offices, both sectors requiring materials for construction.”