The Department of Export Promotion (DEP) in collaboration with the Furniture Industry Club, the Federation of Thai Industries, and the Thai Furniture Industries Association, is organizing the Thailand International Furniture Fair 2010 (TIFF 2010), under the concept of “Living A Green Life”. This event gives business operators a chance to both exhibit their latest furniture designs and seek business partnerships. TIFF 2010 will take place during March 10th-14th, at IMPACT, Thailand.
Mrs. Srirat Rastapana, DEP Director-General, stated that, “The global concerns about climate change have driven designers around the world to originate a new concept of furniture design in order to help raise public awareness on global warming. Such a concept has become a new trend in furniture design. To capitalize on this opportunity, the DEP has planned to arrange this year’s TIFF event under the concept of “Living A Green Life”, which is in compliance with the rising global trend.
“The event will be divided into two parts. During the first three days, March 10th-12th, the event is open exclusively for trade negotiations, while in the last two days, March 13th-14th, it is open for public retailing. Apart from being a spectacular, all-inclusive showcase of Thailand’s very best furniture production capacity and design, TIFF 2010 promises to be a great platform for leading Thai furniture manufacturers, entrepreneurs, designers and operators of related businesses including spare parts, machinery and interior decor materials, to meet with potential buyers and counterparts from overseas. It’s a great chance for virtually everybody in the furniture industry to seek alliance and reach common success.” added Mrs. Srirat.
Mrs. Srirat further noted that, “TIFF 2010 is anticipated to be the most comprehensive furniture exposition ever staged in Thailand. This expectation is to encompass the various aspects of the event including the number of participating exhibitors; revolutionary furniture designs; and, the trade and business opportunities it will present to international visitors and exhibitors themselves. In addition, TIFF 2010 will pave the way for professional Thai designers to demonstrate their capabilities to the world, through collections of unique furniture designs or furniture items made from innovative, eco-friendly materials. The event is expected to welcome more than 33,000 international visitors from Japan, USA, EU, India, Middle East, Africa, Canada, Australia, Malaysia and Singapore.
Sunday, February 7, 2010
Sunday, January 24, 2010
“Thai Watsadu” is ready to run the first store in Bang Bua Thong
“Thai Watsadu” is ready to run the first store in Bang Bua Thong, to please contractors and receive many special offers on the grand opening.
“Thai Watsadu”, “One-Stop-Shopping Construction Material Suppliers for Thai”, is now ready to open for sales on 30 January 2010 on Kanchanapisek Road, Bang Bua Thong on a 30 rai – land plot or 24,000 square meters which cover the west of Bangkok connecting to Nonthaburi and part of Supanburi, Nakhonprathom and Prathumthani. The store offers more than 100,000 SKUs of construction material with guarantee price lower than other small retailers.
President for CRC Power Retail Co., Ltd. and Power Buy Co., Ltd. Suthisarn Chirathivat stated “We invested more than 800 million baht for the first Thai Watsadu store, targeting the construction subcontractor and tailor – made house owners markets including government sectors. Moreover, different from others, we add up our strength in excellent services, quality products and damage warranty.”
“Thai Watsadu” store layout is formatted to suit for customers: a one-story building with a high ceiling equipped with security & fire prevention system, the first store is built on energy saving basis, with indoor parking space for 300 cars. The strengthen of this format is “daily low price”, “variety of products”, “full inventory enough for customer’s demand”, “convenience and swift” and “instantly receive”.
Regarding merchandise management, more than 100,000 SKUs of leading brands are covering major categories of construction products, for example, frameworks like roof, column, beam, base work; architectural decoration like roofing materials, heat prevention, stairs, doors, windows; electricity system like wire, plugs, brakers, switchboard; plumping like water & waste pipe, water tap, valve, plumper; lighting like desk lamp, bed lamp, landscape lighting; kitchen like cabinet, smoke ventilation, stove, dish washers and interior materials like shades, bath, furniture, living room and general electronic appliances.
“PowerBuy”, Thailand’s leading electronic appliance retailer will operate all products at “Thai Watsadu”, bringing more than 3,000 SKUs to their first store in Bang Bua Thong, total 1,000 square meters. At Bang Bua Thong, “Thai Watsdu” highlights “Audio & Visual”, “Home & Small Appliances”, and “Office Automation”. The store layout is designed under theme “warehouse” which, product stocks will be placed on the top of the shelves. Some product categories like AV are grouped by brand in order to give convenience for the customers. Special services are formatted to serve customers, for example, paints mixture, tiles calculation, furniture assembly.
Marketing concept of “Thai Watsadu” is
Completeness: Product complement total 100,000 SKUs
Lower price : Daily low price. No need to wait for promotional seasons
Good: Quality products with guarantee and customers are able to return and change
At “Thai Watsadu” You can get everything
Suthisarn Chirathivat added “ To celebrate the grand opening of the first Thai Watsadu store, we organize special promotions to please the customers in Bang Bua Thong and nearby vicinity, for example, discounted item, 1 baht item, daily lower price and a chance to win prizes worth more than 300,000 baht like gold necklace, motor bike, electric appliance. On 30-31 January are scheduled to be “The Constructor Days” for the first 200 contractors who visit Thai Watsadu and apply “Thai Card”, receive a right to get a 500 baht coupon to discount when purchase 5,000 baht. Moreover, with cooperation with Krugthai Bank upon information provision under project “Loan for Strong Thailand”, aiming to create better understanding among contractors, housing owners and create more confident to acquire a construction bidding or purchasing bidding.
Also, the company has released a member card “Thai Card” which provides customers a lot of benefits, accumulative points, exclusive price, cash or gift redemption, including credit card payment and installment program.”
The grand opening is scheduled 30 January 2010, 10 am, which Nonthaburi Governor Vichien Phuthiwinyoo will preside over, together with top executives of Central Group and suppliers.
“Thai Watsadu”, “One-Stop-Shopping Construction Material Suppliers for Thai”, is now ready to open for sales on 30 January 2010 on Kanchanapisek Road, Bang Bua Thong on a 30 rai – land plot or 24,000 square meters which cover the west of Bangkok connecting to Nonthaburi and part of Supanburi, Nakhonprathom and Prathumthani. The store offers more than 100,000 SKUs of construction material with guarantee price lower than other small retailers.
President for CRC Power Retail Co., Ltd. and Power Buy Co., Ltd. Suthisarn Chirathivat stated “We invested more than 800 million baht for the first Thai Watsadu store, targeting the construction subcontractor and tailor – made house owners markets including government sectors. Moreover, different from others, we add up our strength in excellent services, quality products and damage warranty.”
“Thai Watsadu” store layout is formatted to suit for customers: a one-story building with a high ceiling equipped with security & fire prevention system, the first store is built on energy saving basis, with indoor parking space for 300 cars. The strengthen of this format is “daily low price”, “variety of products”, “full inventory enough for customer’s demand”, “convenience and swift” and “instantly receive”.
Regarding merchandise management, more than 100,000 SKUs of leading brands are covering major categories of construction products, for example, frameworks like roof, column, beam, base work; architectural decoration like roofing materials, heat prevention, stairs, doors, windows; electricity system like wire, plugs, brakers, switchboard; plumping like water & waste pipe, water tap, valve, plumper; lighting like desk lamp, bed lamp, landscape lighting; kitchen like cabinet, smoke ventilation, stove, dish washers and interior materials like shades, bath, furniture, living room and general electronic appliances.
“PowerBuy”, Thailand’s leading electronic appliance retailer will operate all products at “Thai Watsadu”, bringing more than 3,000 SKUs to their first store in Bang Bua Thong, total 1,000 square meters. At Bang Bua Thong, “Thai Watsdu” highlights “Audio & Visual”, “Home & Small Appliances”, and “Office Automation”. The store layout is designed under theme “warehouse” which, product stocks will be placed on the top of the shelves. Some product categories like AV are grouped by brand in order to give convenience for the customers. Special services are formatted to serve customers, for example, paints mixture, tiles calculation, furniture assembly.
Marketing concept of “Thai Watsadu” is
Completeness: Product complement total 100,000 SKUs
Lower price : Daily low price. No need to wait for promotional seasons
Good: Quality products with guarantee and customers are able to return and change
At “Thai Watsadu” You can get everything
Suthisarn Chirathivat added “ To celebrate the grand opening of the first Thai Watsadu store, we organize special promotions to please the customers in Bang Bua Thong and nearby vicinity, for example, discounted item, 1 baht item, daily lower price and a chance to win prizes worth more than 300,000 baht like gold necklace, motor bike, electric appliance. On 30-31 January are scheduled to be “The Constructor Days” for the first 200 contractors who visit Thai Watsadu and apply “Thai Card”, receive a right to get a 500 baht coupon to discount when purchase 5,000 baht. Moreover, with cooperation with Krugthai Bank upon information provision under project “Loan for Strong Thailand”, aiming to create better understanding among contractors, housing owners and create more confident to acquire a construction bidding or purchasing bidding.
Also, the company has released a member card “Thai Card” which provides customers a lot of benefits, accumulative points, exclusive price, cash or gift redemption, including credit card payment and installment program.”
The grand opening is scheduled 30 January 2010, 10 am, which Nonthaburi Governor Vichien Phuthiwinyoo will preside over, together with top executives of Central Group and suppliers.
The first time in Thailand, JARKEN launches the 4D “MINE” Series- the phenomenal super luxury in property industry - with expected revenue of 300 MB.
JARKEN Group of Companies is taking a firmer and more solid step into the year 2010 by launching “MINE” Series in 4D form of perfection, targeting only at the elite and aiming at 300 MB revenue.
Kuldej Sinthawanarong PhD., Managing Director of JARKEN Group of Companies, the avant-garde architectural organization well trusted both locally and internationally, has disclosed that “After 9 years of fulfilling the needs of our clients in Thailand as well as international, JARKEN is now well versed for our unique style of minimalism blended perfectly well with modern elegancy. With client’s satisfaction in mind, JARKEN has achieved full trust from clients to design very high end residences, be it condominium or houses with space of 200-10,000 sqm. and budget of 15-20 or over 100 MB. Our clients are Thai and foreign developers as well as individuals”
“In 2010- we adopted a more aggressive marketing strategy especially in developing and creating new designs in order to answer to the need of broader scale of clients. We changed our logo from a green cross on white background to the solid black letters of JARKEN in combination with the 4 vertical lines of different sizes. It symbolized our professionalism in external and internal architectural designs,
Last but not least is our masterpiece of architectural design “MINE” Series by JARKEN. This new residential designs reflect well each individual characteristics, the inter-relation of spaces which allow each dweller to absorb in the ambience of every corner of his/her own “home”. The house is “MINE”. Pride one has in his/her house likens pride in the achievement along the passage of past unto present when he/she is at “home”.
There are 3 designs with 3 styles in “MINE” Series, ie, Quintessence, Extravaganza and Temptation with spaces of 2,000 sqm. up and budgets of 50-100 MB. The presentation of this “MINE” Series is in the perfect form of 4D.
In addition, the Company has created very unique Magazine Ads. We’ve got great honor from clients who worked mutually with us to create 5 masterpieces under the concept “Modeling JARKEN’s Role Models” which reflected the achievement, from extensive effort, in each and every aspect of designs for construction and services delivered to clients in the JARKEN’s way. Once the campaign is launched, it will be “talk of the town” especially and extensively in the property industry” anticipated Kuldej Sinthawanarong PhD.
JARKEN focuses only on high end and super luxury targets. And that covers 5-10% of the total market. The possibility is high since we have earned recognized international awards. And that put JARKEN on the path of never-ending development in order to create, to design and to deliver services that differ. We are confident that this will be another good year for JARKEN and we will achieve 300 MB revenue with our “MINE” Series.
Kuldej Sinthawanarong PhD., Managing Director of JARKEN Group of Companies, the avant-garde architectural organization well trusted both locally and internationally, has disclosed that “After 9 years of fulfilling the needs of our clients in Thailand as well as international, JARKEN is now well versed for our unique style of minimalism blended perfectly well with modern elegancy. With client’s satisfaction in mind, JARKEN has achieved full trust from clients to design very high end residences, be it condominium or houses with space of 200-10,000 sqm. and budget of 15-20 or over 100 MB. Our clients are Thai and foreign developers as well as individuals”
“In 2010- we adopted a more aggressive marketing strategy especially in developing and creating new designs in order to answer to the need of broader scale of clients. We changed our logo from a green cross on white background to the solid black letters of JARKEN in combination with the 4 vertical lines of different sizes. It symbolized our professionalism in external and internal architectural designs,
Last but not least is our masterpiece of architectural design “MINE” Series by JARKEN. This new residential designs reflect well each individual characteristics, the inter-relation of spaces which allow each dweller to absorb in the ambience of every corner of his/her own “home”. The house is “MINE”. Pride one has in his/her house likens pride in the achievement along the passage of past unto present when he/she is at “home”.
There are 3 designs with 3 styles in “MINE” Series, ie, Quintessence, Extravaganza and Temptation with spaces of 2,000 sqm. up and budgets of 50-100 MB. The presentation of this “MINE” Series is in the perfect form of 4D.
In addition, the Company has created very unique Magazine Ads. We’ve got great honor from clients who worked mutually with us to create 5 masterpieces under the concept “Modeling JARKEN’s Role Models” which reflected the achievement, from extensive effort, in each and every aspect of designs for construction and services delivered to clients in the JARKEN’s way. Once the campaign is launched, it will be “talk of the town” especially and extensively in the property industry” anticipated Kuldej Sinthawanarong PhD.
JARKEN focuses only on high end and super luxury targets. And that covers 5-10% of the total market. The possibility is high since we have earned recognized international awards. And that put JARKEN on the path of never-ending development in order to create, to design and to deliver services that differ. We are confident that this will be another good year for JARKEN and we will achieve 300 MB revenue with our “MINE” Series.
Sunday, January 17, 2010
‘Cotto’ sanitary ware and faucets celebrates its ‘25th Anniversary’ with a vision to become ‘the industry leader in ASEAN’ in 5 years
‘Cotto’ sanitary ware and faucets marks its ‘25th Anniversary’ celebration with an aspiring vision to become an all-inclusive leader in the industry in Southeast Asia within the year 2014. The company plans to achieve this ultimate goal through its 4 unique ‘Brand Attributes’.
Mr. Saravut Sumransub, Managing Director, Siam Sanitary Ware Industry Co., Ltd., stated that, “The overwhelming success of Cotto over the past 25 years will undoubtedly be a solid foundation for the brand to springboard to even greater success in the future. To us, one of our greatest achievements so far is the fact that Cotto manages to win hearts of consumers of many different lifestyles and target groups.”
“Our next challenging, yet practical, goal is to become the all-inclusive leader in sanitary ware products and services in ASEAN within the year 2014, or about 5 years from now. Currently, our consolidated sales in ASEAN comprising Brunei, Singapore, Cambodia, Burma, Vietnam, Laos, the Philippines and Malaysia accounts for 40% of our total export volume.”, added Mr. Saravut.
“Looking ahead into 2010, Cotto plans to continue to open its innovative Cotto Studio, a one-stop sanitary ware products and service center offering 4 convenient solutions to customers – Bathroom Solution, Surface Covering, Water Solution and Kitchen Solution. Recently, we completed the renovation to turn the Don Mueang showroom at our headquarters to become the 11th Cotto Studio. This will make it easier for customers to have access to our various products and services.”
For 2010, the company aims to generate approximately 4.8 Billion Baht revenue for its sanitary ware products and faucets, a 15% increase from the previous year. Cotto is also determined to retain its market leadership with over 60% market share for sanitary ware and 40% for faucets. At present, 70% of its sales are domestic while another 30% is from export.
Mr. Saravut further noted that, “In order to become the ASEAN leader as we aspire to, as well as, to achieve the sales targets we are aiming at, we are making efforts to offer ‘The Right Solution’ for customers of many different lifestyles and needs. Our products come in many different designs for them to choose from, and our professional services are comprehensive covering product designs to installations.”
“At Cotto, we operate with the ‘4 Attributes’ philosophy which comprises the following. ‘Co-Create’ which means cooperation and teamwork to achieve utmost customer satisfaction. ‘Innovative’, the ability to always come up with new ideas and technology to make it easier for customers to benefit fully from our products. ‘Hassle-Free’, the ability to design our products to be user-friendly and easy-to-use. And lastly, ‘Integrity’, which reflects our genuine commitment to fair business ethics and good governance.”, concluded Mr. Saravut.
Mr. Saravut Sumransub, Managing Director, Siam Sanitary Ware Industry Co., Ltd., stated that, “The overwhelming success of Cotto over the past 25 years will undoubtedly be a solid foundation for the brand to springboard to even greater success in the future. To us, one of our greatest achievements so far is the fact that Cotto manages to win hearts of consumers of many different lifestyles and target groups.”
“Our next challenging, yet practical, goal is to become the all-inclusive leader in sanitary ware products and services in ASEAN within the year 2014, or about 5 years from now. Currently, our consolidated sales in ASEAN comprising Brunei, Singapore, Cambodia, Burma, Vietnam, Laos, the Philippines and Malaysia accounts for 40% of our total export volume.”, added Mr. Saravut.
“Looking ahead into 2010, Cotto plans to continue to open its innovative Cotto Studio, a one-stop sanitary ware products and service center offering 4 convenient solutions to customers – Bathroom Solution, Surface Covering, Water Solution and Kitchen Solution. Recently, we completed the renovation to turn the Don Mueang showroom at our headquarters to become the 11th Cotto Studio. This will make it easier for customers to have access to our various products and services.”
For 2010, the company aims to generate approximately 4.8 Billion Baht revenue for its sanitary ware products and faucets, a 15% increase from the previous year. Cotto is also determined to retain its market leadership with over 60% market share for sanitary ware and 40% for faucets. At present, 70% of its sales are domestic while another 30% is from export.
Mr. Saravut further noted that, “In order to become the ASEAN leader as we aspire to, as well as, to achieve the sales targets we are aiming at, we are making efforts to offer ‘The Right Solution’ for customers of many different lifestyles and needs. Our products come in many different designs for them to choose from, and our professional services are comprehensive covering product designs to installations.”
“At Cotto, we operate with the ‘4 Attributes’ philosophy which comprises the following. ‘Co-Create’ which means cooperation and teamwork to achieve utmost customer satisfaction. ‘Innovative’, the ability to always come up with new ideas and technology to make it easier for customers to benefit fully from our products. ‘Hassle-Free’, the ability to design our products to be user-friendly and easy-to-use. And lastly, ‘Integrity’, which reflects our genuine commitment to fair business ethics and good governance.”, concluded Mr. Saravut.
Thursday, November 19, 2009
Speculative-Grade Bond Market Conditions Have Improved, But Risks Remain, Article Says
The speculative-grade corporate bond market has made a sharp turnaround from earlier in the year, said an article published today by Standard & Poor's, titled "U.S. Speculative-Grade Spreads Sector Index Review: Prices Might Be Ahead Of Fundamentals (Premium)."
"The spread on Standard & Poor's speculative-grade bond index has tightened 947 basis points this year to 700 basis points as of Nov. 12, and high-yield bond returns have eclipsed 50%," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
Credit quality has begun to stabilize, albeit at a very weak level. Downgrades have slowed considerably, falling to 106 in the third quarter of 2009 from 241 in the first quarter and 210 in the second quarter.
"Credit metrics, such as debt to EBITDA and interest coverage, are likely at or near the cyclical bottom. However, rapid improvement would take a surge in top-line growth, which we believe is unlikely to happen this year," said Ms. Vazza. "We expect fundamentals to remain weak for speculative-grade-rated companies in 2010."
Sectors with high leverage and low interest coverage levels such as forest products and building materials, automotive, capital goods, and media and entertainment have the highest risk premiums.
Spreads have tightened across all sectors, with some sectors, such as automotive, experiencing significant tightening, more so a result of the removal of defaulted issues from the pool rather than an increase in bond prices in the sector.
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
"The spread on Standard & Poor's speculative-grade bond index has tightened 947 basis points this year to 700 basis points as of Nov. 12, and high-yield bond returns have eclipsed 50%," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
Credit quality has begun to stabilize, albeit at a very weak level. Downgrades have slowed considerably, falling to 106 in the third quarter of 2009 from 241 in the first quarter and 210 in the second quarter.
"Credit metrics, such as debt to EBITDA and interest coverage, are likely at or near the cyclical bottom. However, rapid improvement would take a surge in top-line growth, which we believe is unlikely to happen this year," said Ms. Vazza. "We expect fundamentals to remain weak for speculative-grade-rated companies in 2010."
Sectors with high leverage and low interest coverage levels such as forest products and building materials, automotive, capital goods, and media and entertainment have the highest risk premiums.
Spreads have tightened across all sectors, with some sectors, such as automotive, experiencing significant tightening, more so a result of the removal of defaulted issues from the pool rather than an increase in bond prices in the sector.
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Sunday, November 8, 2009
Steel product makers fear Afta influx
Steel and stainless steel product manufacturers have called for measures to protect local businesses, at risk from the elimination of import tariffs under the Asean Free Trade Agreement (Afta)in January.
Once the import tariff is removed,cheaper steel and stainless steel products, mostly from China, are expected to flood into the local market.
Ekachai Youngvanich, vice-chairman of the executive committee of Satien Stainless Steel Plc and a member of the Federation of Thai Industries' steel club,said several steel and stainless steel companies had discussed the potential impact and how to tackle the problem.
"The government should help us and protect the local industry. We're worried that independent importers will bring in low-quality kitchenware products to Thailand. The market will get more intense and consumers will not be safe using these products," he said.
Satien Steel Kitchenware, the maker of Zebra kitchen products, aims to avoid tough competition by shifting to focus on premium products.
But governments in many Southeast Asian countries have already implemented measures to protect their manufacturers, which makes it harder for Thai companies to export to these markets.
For example, Malaysia has already set up the Malaysian Industrial Standards Institute to test imported Thai stainless-steel tubes.
"We think our company will get a positive effect when exporting products to Asean. The non-trade barrier will make our price go down, so we can sell 5% to 10% more products," said Mr Ekachai.
Purchasing power for stainless kitchenware products has improved both locally and overseas at the moment, he said. The company has had more export orders from the United States, Europe and Australia.
The company will therefore open its new 200-million-baht production facility at its Rayong factory by the middle of next year. This will raise production capacity by 10-15% from the current 6,000 tonnes per year, and should enable the company to meet demand over the next five years.
About 70% of production will serve the domestic market and the rest exports.
Sales of Satien Stainless Steel last year were at 1.2 billion baht. They are expected to increase by 5-7% this year,less than last year's double-digit growth due to the downturn and the H1N1 flu outbreak. Demand for stainless-steel kitchenware from hotels and restaurants has also fallen in line with the slump in tourism.
Mr Ekachai said demand for Satien's kitchenware will increase by 7-10% next year because of the rebound. The company aims to achieve annual sales of 1.5 billion baht within the next five years.
Once the import tariff is removed,cheaper steel and stainless steel products, mostly from China, are expected to flood into the local market.
Ekachai Youngvanich, vice-chairman of the executive committee of Satien Stainless Steel Plc and a member of the Federation of Thai Industries' steel club,said several steel and stainless steel companies had discussed the potential impact and how to tackle the problem.
"The government should help us and protect the local industry. We're worried that independent importers will bring in low-quality kitchenware products to Thailand. The market will get more intense and consumers will not be safe using these products," he said.
Satien Steel Kitchenware, the maker of Zebra kitchen products, aims to avoid tough competition by shifting to focus on premium products.
But governments in many Southeast Asian countries have already implemented measures to protect their manufacturers, which makes it harder for Thai companies to export to these markets.
For example, Malaysia has already set up the Malaysian Industrial Standards Institute to test imported Thai stainless-steel tubes.
"We think our company will get a positive effect when exporting products to Asean. The non-trade barrier will make our price go down, so we can sell 5% to 10% more products," said Mr Ekachai.
Purchasing power for stainless kitchenware products has improved both locally and overseas at the moment, he said. The company has had more export orders from the United States, Europe and Australia.
The company will therefore open its new 200-million-baht production facility at its Rayong factory by the middle of next year. This will raise production capacity by 10-15% from the current 6,000 tonnes per year, and should enable the company to meet demand over the next five years.
About 70% of production will serve the domestic market and the rest exports.
Sales of Satien Stainless Steel last year were at 1.2 billion baht. They are expected to increase by 5-7% this year,less than last year's double-digit growth due to the downturn and the H1N1 flu outbreak. Demand for stainless-steel kitchenware from hotels and restaurants has also fallen in line with the slump in tourism.
Mr Ekachai said demand for Satien's kitchenware will increase by 7-10% next year because of the rebound. The company aims to achieve annual sales of 1.5 billion baht within the next five years.
Wednesday, November 4, 2009
SCG PAPER TURNS TO ALTERNATIVE PULP MATERIALS
SCG Paper is resorting to other materials for paper pulp-making, to ease the expected increase in global waste paper prices due to higher demand from China.
President Chaovalit Ekabut said that the other materials for pulp-making, would offer the same quality as waste paper. Importantly, the production cost should be lower than when using waste paper to be imported from the United States.
The paper unit of the Siam Cement Group expects the global demand for waste paper next year to increase due to the business resumption of paper manufacturers in China.
Chaovalit said several Chinese paper manufacturers have resumed their operations after suspensions during the economic crisis. Those companies will have to order waste paper from the US, which is the largest supplier.
The move of Chinese paper-makers might affect other paper manufacturers including SCG Paper because the company is one of those that purchases scrap paper from the US to be made into new paper products.
Chinese paper manufacturers are expected to order a lot of scrap paper. They are expected to produce 2 million tonnes next year.
Chavalit said the company has to reduce risk from the expected shortage of scrap paper by considering using another material that is not made from scrap paper, such as weeds.
Other material prices should be lower than scrap paper, he said.
He said that the resumption of Chinese paper manufacturing has driven scrap paper prices up from the current level of between US$160 (Bt5,350) and $170 per tonne.
However, the scrap paper price is not expected to increase to $250 like in 2008, because of the low paper consumption of the US. The low consumption in the US is in line with the country's economic crisis. The consumption of paper this year dropped by 30 per cent.
In addition, the company believes the economic situation has bottomed out because sales revenue and net profit in the third quarter improved from the second quarter, he said.
SCG paper earned sales revenue of Bt11.23 billion, up 6 per cent from the second quarter while net |profit increased by 10 per cent to Bt701 million from the last quarter and increased 13 per cent year on year.
Chavalit noted that the pick up of sales revenue in the third quarter might help the total sales revenue this year meet flat growth or drop a little from last year's Bt47 billion. The company earlier predicted a plunge in sales in 2009 due to the crisis.
He said that the company outlook next year should be brighter because it will realise full revenue from a new paper craft plant in Vietnam. The company expected the plant in Vietnam would contribute Bt2.5 billion in sales revenue next year.
Chavalit added that besides the new plant in Vietnam, the company is ready for new investment. One of SCG Paper's investments is the merger and acquisition of paper plants in Thailand and overseas.
He could not reveal the investment budget for M&A, but said the M&As should be seen soon.
President Chaovalit Ekabut said that the other materials for pulp-making, would offer the same quality as waste paper. Importantly, the production cost should be lower than when using waste paper to be imported from the United States.
The paper unit of the Siam Cement Group expects the global demand for waste paper next year to increase due to the business resumption of paper manufacturers in China.
Chaovalit said several Chinese paper manufacturers have resumed their operations after suspensions during the economic crisis. Those companies will have to order waste paper from the US, which is the largest supplier.
The move of Chinese paper-makers might affect other paper manufacturers including SCG Paper because the company is one of those that purchases scrap paper from the US to be made into new paper products.
Chinese paper manufacturers are expected to order a lot of scrap paper. They are expected to produce 2 million tonnes next year.
Chavalit said the company has to reduce risk from the expected shortage of scrap paper by considering using another material that is not made from scrap paper, such as weeds.
Other material prices should be lower than scrap paper, he said.
He said that the resumption of Chinese paper manufacturing has driven scrap paper prices up from the current level of between US$160 (Bt5,350) and $170 per tonne.
However, the scrap paper price is not expected to increase to $250 like in 2008, because of the low paper consumption of the US. The low consumption in the US is in line with the country's economic crisis. The consumption of paper this year dropped by 30 per cent.
In addition, the company believes the economic situation has bottomed out because sales revenue and net profit in the third quarter improved from the second quarter, he said.
SCG paper earned sales revenue of Bt11.23 billion, up 6 per cent from the second quarter while net |profit increased by 10 per cent to Bt701 million from the last quarter and increased 13 per cent year on year.
Chavalit noted that the pick up of sales revenue in the third quarter might help the total sales revenue this year meet flat growth or drop a little from last year's Bt47 billion. The company earlier predicted a plunge in sales in 2009 due to the crisis.
He said that the company outlook next year should be brighter because it will realise full revenue from a new paper craft plant in Vietnam. The company expected the plant in Vietnam would contribute Bt2.5 billion in sales revenue next year.
Chavalit added that besides the new plant in Vietnam, the company is ready for new investment. One of SCG Paper's investments is the merger and acquisition of paper plants in Thailand and overseas.
He could not reveal the investment budget for M&A, but said the M&As should be seen soon.
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