Profits at China's oil producers, steel makers and other major industrial companies fell 10.6% in the first eight months of 2009 from the same period a year earlier, the National Bureau of Statistics said yesterday.
Total profits for the biggest Chinese industrial companies -those with annual revenues above 5 million yuan ($732,000)- were 1.67 trillion yuan ($245 billion) from January to August, data showed.
The data highlighted the impact of the global economic crisis on China's biggest companies, both private and state-owned, despite a multi-billiondollar government stimulus plan.
But it also marked an improvement from the last such survey in May, in which industrial profits fell 22.9% to 850 billion yuan ($124 billion) in the first five months of 2009 from the same period a year earlier.
Hardest hit were the iron and steel sector, where profits declined by 71.7%,and the petroleum and natural gas industries, which suffered a 68.5% drop in profits.
Sunday, September 27, 2009
Two provinces singled out for steel mill
A preliminary environmental impact study has started at two sites in Chanthaburi and Songkhla that have been deemed promising for an upstream steel project.
The study is expected to take six months and if the cabinet approves the results, it would notify prospective investors and ask them to prepare investment plan and details on contributions the ventures would make to the communities.
Sources said the Strategic Environmental Assessment (SEA) studies would be conducted in Ranod district of Songkhla and Laem Sing in Chanthaburi.
The site in Chanthaburi is 70% forest area that needs rehabilitation, and the remaining land was formerly a prawn farm. The location, near industrial plants that need steel products in the Eastern Seaboard, offers the site an advantage.However, additional work needs to be done to improve ship access.
The site in Songkhla offers good seaport facilities but is distant from industrial customers. It currently houses a rice farm and an old prawn farm.
According to Vikrom Vajragupta, director of the Iron and Steel Institute of Thailand, the study would cover the establishment of community livelihood development programmes such as irrigation projects, water treatment and farm machinery centres to help local communities coexist with the industry.
The study on geographic features will identify if certain alterations will be needed to accommodate upstream steel manufacturing and would involve community participation.
Also part of the study will be the establishment of supporting industries such as shipbuilding or other steel-intensive industries to promote industrial cluster development.
The study is expected to take six months and if the cabinet approves the results, it would notify prospective investors and ask them to prepare investment plan and details on contributions the ventures would make to the communities.
Sources said the Strategic Environmental Assessment (SEA) studies would be conducted in Ranod district of Songkhla and Laem Sing in Chanthaburi.
The site in Chanthaburi is 70% forest area that needs rehabilitation, and the remaining land was formerly a prawn farm. The location, near industrial plants that need steel products in the Eastern Seaboard, offers the site an advantage.However, additional work needs to be done to improve ship access.
The site in Songkhla offers good seaport facilities but is distant from industrial customers. It currently houses a rice farm and an old prawn farm.
According to Vikrom Vajragupta, director of the Iron and Steel Institute of Thailand, the study would cover the establishment of community livelihood development programmes such as irrigation projects, water treatment and farm machinery centres to help local communities coexist with the industry.
The study on geographic features will identify if certain alterations will be needed to accommodate upstream steel manufacturing and would involve community participation.
Also part of the study will be the establishment of supporting industries such as shipbuilding or other steel-intensive industries to promote industrial cluster development.
PRODUCERS DENY HOME PRICES BEING PUSHED UP
Although prices for construction raw materials are expected to rise significantly in the fourth quarter and early next year, the increase will not effect residential prices, because it will not force materials prices above those in this year's first quarter, producers and building experts say.
SCG Distribution president Kajohndet Sangsuban said cement prices had already risen from between Bt1,400 and Bt1,500 a tonne in the second quarter to between Bt1,500 and Bt1,600 a tonne in the third, an increase of 6-7 per cent.
The increase followed higher demand for cement as developers raised their construction rates to replenish shrinking residential inventories, he said.
However, the new price is still lower than in the first quarter, when cement cost Bt2,200 a tonne.
The present price of steel is Bt19,000 a tonne, well below the first-quarter price of Bt37,000.
Kajohndet said he believed the higher cement price would not raise residential prices above those in the first quarter.
Prices for other construction materials, such as tiles, paint and sanitary-ware, remain about the same as those in the first quarter.
"When the cost of construction is compared with that in the first quarter, we believe residential prices will remain about the same as those in the first half of the year," he said.
Chantana Sukumanont, executive-committee deputy chairman for marketing and sales at Siam City Cement, said despite the significant likelihood of higher prices, cement would remain cheaper than in the first quarter. There will therefore be no affect on residential prices.
SCG Cement president Pramote Techasupatkul said demand for cement had improved "step by step".
"We saw it drop 10 per cent and 4 per cent, respectively, in the first two quarters of the year but believe it will show modest growth in the second half," he said.
Total cement consumption is expected to be about 24 million tonnes this year, slightly lower than nearly 25 million tonnes last year.
SCG plans to sell 17 million tonnes of cement this year. Of this, 9 million tonnes will be sold in the domestic market and the rest exported. The company is focused on boosting its cement exports to South Africa, the Middle East and Asean countries, Pramote said.
Earlier, property developers warned residential prices would increase 7-10 per cent next year. Of this, 4 per cent will come from the expiry of property tax incentives next March 28 and the rest from rises in the cost of construction materials.
If the government extends the period for tax incentives, residential prices will increase 5-7 per cent, because of higher prices for construction materials alone, said Thai Condominium Association president Atip Bijanonda.
SCG Distributon president Kajohndet Sangsuban believes the higher cement price will not raise residential prices above those in the first quarter.
SCG Distribution president Kajohndet Sangsuban said cement prices had already risen from between Bt1,400 and Bt1,500 a tonne in the second quarter to between Bt1,500 and Bt1,600 a tonne in the third, an increase of 6-7 per cent.
The increase followed higher demand for cement as developers raised their construction rates to replenish shrinking residential inventories, he said.
However, the new price is still lower than in the first quarter, when cement cost Bt2,200 a tonne.
The present price of steel is Bt19,000 a tonne, well below the first-quarter price of Bt37,000.
Kajohndet said he believed the higher cement price would not raise residential prices above those in the first quarter.
Prices for other construction materials, such as tiles, paint and sanitary-ware, remain about the same as those in the first quarter.
"When the cost of construction is compared with that in the first quarter, we believe residential prices will remain about the same as those in the first half of the year," he said.
Chantana Sukumanont, executive-committee deputy chairman for marketing and sales at Siam City Cement, said despite the significant likelihood of higher prices, cement would remain cheaper than in the first quarter. There will therefore be no affect on residential prices.
SCG Cement president Pramote Techasupatkul said demand for cement had improved "step by step".
"We saw it drop 10 per cent and 4 per cent, respectively, in the first two quarters of the year but believe it will show modest growth in the second half," he said.
Total cement consumption is expected to be about 24 million tonnes this year, slightly lower than nearly 25 million tonnes last year.
SCG plans to sell 17 million tonnes of cement this year. Of this, 9 million tonnes will be sold in the domestic market and the rest exported. The company is focused on boosting its cement exports to South Africa, the Middle East and Asean countries, Pramote said.
Earlier, property developers warned residential prices would increase 7-10 per cent next year. Of this, 4 per cent will come from the expiry of property tax incentives next March 28 and the rest from rises in the cost of construction materials.
If the government extends the period for tax incentives, residential prices will increase 5-7 per cent, because of higher prices for construction materials alone, said Thai Condominium Association president Atip Bijanonda.
SCG Distributon president Kajohndet Sangsuban believes the higher cement price will not raise residential prices above those in the first quarter.
SCG SEEKS THIRD GROUP OF POOR STUDENTS
The Siam Cement Group has begun a third year of its Home Mart Career Choice programme, aiming to provide training to 25-30 poor students who want to excel in knowledge of construction materials.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
Wednesday, September 23, 2009
World steel production rises
Global crude steel production rose to its highest level in almost a year in August, figures from the World Steel Association showed on Monday, as steel mills restarted idled capacity due to increased orders.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
TATA STEEL EXPECTS GROWTH IN DOMESTIC DEMAND AND ACTIVITY
The government's Thai Khemkhaeng (Invest for Strength) stimulus package has given steelmakers hope in a gloomy scenario, even encouraging major manufacturer Tata Steel (Thailand) to sell only in the domestic market next year.
Tata Steel president Santi Chankolrawee said the company will next year sell its steel only in the local market thanks to the stimulus plan, which will increase demand for steel in the country.
"The economic stimulus package of the government has boosted the confidence of steelmakers," he said.
He said steel manufacturers are banking on the Thai Khemkhaeng project, especially the water resource development, which is part of the package.
Most of Tata Steel's revenue comes from the domestic market, accounting for about 90 per cent and the rest from exports, he said. The company prefers domestic sales to exports because of higher margin. However, the country's economic slowdown had forced the company to diversify risk by exporting to overseas markets.
He said the steel industry in Thailand is expected to recover soon, which is reflected in the stable price of steel compared with the plunging price in 2008 after the financial crisis fully hit the global economy.
He said steel used to record its highest price at Bt36,000 per tonne before the global economy was hit by the financial crisis, after which it dropped steeply to Bt15,000 to Bt16,000. All steelmakers suffered inventory losses.
"However, the steel price currently is Bt20,000 per tonnes. We expect this trend for the next one to two years," he said.
The company expressed confidence in its revenue for fiscal year April 2009 to March 2010, with expectations of a net profit even though it recorded a net loss of Bt167.89 million in its first quarter ended June 2009.
Tata Steel (Thailand) predicts revenue for the fiscal year 2009 will reach Bt20 billion. Santi said the expected revenue was reflected by the increased capacity utilisation to 80 per cent, or 100,000 tonnes, a month from 60 per cent early. The figure is expected to reach 90 per cent, or 120,000 tonnes, a month, he added.
Although things are looking up for the steel industry, the company still has concerns about the price war among manufacturers due to oversupply.
Its parent company - Tata Steel Group - has set a policy that the operation in Thailand should not lose money this year.
Tata Steel Thailand is the market leader with a 30-per-cent share.
Santi said the company would resume its investment plan once the world economy recovers. It has cash flow of Bt3 billion, while its debt-to-equity ratio is 0.5 times. Because of its strong financial standing, it believes banks are willing to lend for the future investment.
Tata Steel president Santi Chankolrawee said the company will next year sell its steel only in the local market thanks to the stimulus plan, which will increase demand for steel in the country.
"The economic stimulus package of the government has boosted the confidence of steelmakers," he said.
He said steel manufacturers are banking on the Thai Khemkhaeng project, especially the water resource development, which is part of the package.
Most of Tata Steel's revenue comes from the domestic market, accounting for about 90 per cent and the rest from exports, he said. The company prefers domestic sales to exports because of higher margin. However, the country's economic slowdown had forced the company to diversify risk by exporting to overseas markets.
He said the steel industry in Thailand is expected to recover soon, which is reflected in the stable price of steel compared with the plunging price in 2008 after the financial crisis fully hit the global economy.
He said steel used to record its highest price at Bt36,000 per tonne before the global economy was hit by the financial crisis, after which it dropped steeply to Bt15,000 to Bt16,000. All steelmakers suffered inventory losses.
"However, the steel price currently is Bt20,000 per tonnes. We expect this trend for the next one to two years," he said.
The company expressed confidence in its revenue for fiscal year April 2009 to March 2010, with expectations of a net profit even though it recorded a net loss of Bt167.89 million in its first quarter ended June 2009.
Tata Steel (Thailand) predicts revenue for the fiscal year 2009 will reach Bt20 billion. Santi said the expected revenue was reflected by the increased capacity utilisation to 80 per cent, or 100,000 tonnes, a month from 60 per cent early. The figure is expected to reach 90 per cent, or 120,000 tonnes, a month, he added.
Although things are looking up for the steel industry, the company still has concerns about the price war among manufacturers due to oversupply.
Its parent company - Tata Steel Group - has set a policy that the operation in Thailand should not lose money this year.
Tata Steel Thailand is the market leader with a 30-per-cent share.
Santi said the company would resume its investment plan once the world economy recovers. It has cash flow of Bt3 billion, while its debt-to-equity ratio is 0.5 times. Because of its strong financial standing, it believes banks are willing to lend for the future investment.
SCG UPBEAT ON CONSUMPTION SURGE
Thailand's cement consumption is poised to see a slight positive growth in the second half of this year, driven by the government's stimulus package through infrastructure projects.
"This has helped restore the private sector's confidence," said the country's leading cement-maker, SCG Cement.
This is the first sign of growth for the industry in three years since the country was hit by political unrest and the global financial meltdown.
"Demand for cement has improved step by step. We saw it drop by 10 per cent and 4 per cent respectively in the first two quarters, and we believe that it would show a small growth in the second half of this year," said SCG Cement's president, Pramote Techasupatkul.
However, total cement consumption in 2009 is estimated to be around 24 million tonnes, slightly dropping from nearly 25 million tonnes last year.
He said SCG planned to sell 17 million tonnes of cement this year, 9 million on the domestic market and the rest through exports. He said it has focused on boosting its exports to South Africa, the Middle East, and Asean.
Meanwhile, the company yesterday launched "Elephant Marine Cement", a special formula of cement blending with slag that has double the strength of Portland cement. The new product will serve construction projects such as hotels and resorts near the sea or constructions in brackish water areas.
Pramote said SCG planned to achieve the sales of Bt100 million in the first year after this new product enters the market.
Presently, SCG Cement generates 12-13 per cent of sales revenue from high-value products, which would account for 20 per cent in the next five years.
"We allocated the budget of Bt180 million this year for R&D programme to develop eco-friendly products, confirming our continuous commitment to environment preservation. The budget would be increased to Bt200 million in the coming year," he said.
SCG Cement has invested Bt5.8 billion to create the Waste Heat Generator system, which will be completely installed in all cement plants by this year end. This project will not only save energy cost in the production process but also reduce emission of 300,000 tonnes of greenhouse gases per year.
"This has helped restore the private sector's confidence," said the country's leading cement-maker, SCG Cement.
This is the first sign of growth for the industry in three years since the country was hit by political unrest and the global financial meltdown.
"Demand for cement has improved step by step. We saw it drop by 10 per cent and 4 per cent respectively in the first two quarters, and we believe that it would show a small growth in the second half of this year," said SCG Cement's president, Pramote Techasupatkul.
However, total cement consumption in 2009 is estimated to be around 24 million tonnes, slightly dropping from nearly 25 million tonnes last year.
He said SCG planned to sell 17 million tonnes of cement this year, 9 million on the domestic market and the rest through exports. He said it has focused on boosting its exports to South Africa, the Middle East, and Asean.
Meanwhile, the company yesterday launched "Elephant Marine Cement", a special formula of cement blending with slag that has double the strength of Portland cement. The new product will serve construction projects such as hotels and resorts near the sea or constructions in brackish water areas.
Pramote said SCG planned to achieve the sales of Bt100 million in the first year after this new product enters the market.
Presently, SCG Cement generates 12-13 per cent of sales revenue from high-value products, which would account for 20 per cent in the next five years.
"We allocated the budget of Bt180 million this year for R&D programme to develop eco-friendly products, confirming our continuous commitment to environment preservation. The budget would be increased to Bt200 million in the coming year," he said.
SCG Cement has invested Bt5.8 billion to create the Waste Heat Generator system, which will be completely installed in all cement plants by this year end. This project will not only save energy cost in the production process but also reduce emission of 300,000 tonnes of greenhouse gases per year.
CONSTRUCTION MATERIALS PRICES TO BE CONTROLLED
Producers of construction materials will be allowed to hike their retail prices if the price of diesel increases another Bt5 a litre, the Commerce Ministry said yesterday.
The unavoidable increase of Bt5 a litre will directly affect transportation costs and the production costs of manufacturers, it said.
Construction materials are on a list of goods for which prices are controlled. The ministry recently extended price-control measures on the list of goods until the end of the year.
High on the ministry's agenda at present is the enhancement of domestic consumption in line with the government's Thai Khemkhaeng project.
Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.
"Money from the Thai Khemkhaeng project, which will soon be injected into public investment, will partly stimulate growth in the construction industry. The government will try to curb the retail prices of these products to ensure a lower burden on consumers, while traders will not take the opportunity to increase their retail prices," Porntiva said.
After inspecting the prices of construction materials on Monday, the ministry found that most prices were within its recommendations.
As of September 2, the price of steel rod had increased slightly from Bt107.29 in August to Bt109.78, or from Bt21,500 to Bt22,000 per tonne. The retail price of mixed cement (Tiger brand) is quoted at Bt135 to Bt142 per 50-kilo bag, lower than the ministry's recommended price of Bt144 per bag. Portland cement (Elephant brand) is quoted at Bt145 to Bt156 per bag, while the recommended price is Bt161.
Internal Trade Department director-general Yangyong Phuangrach said the ministry would only consider allowing steel prices to increase if domestic diesel prices rose by another Bt5 per litre.
"The department will control prices as there are no serious negative factors to increase production costs for the remainder of this year," he said.
Moreover, he said the department would not allow any producers, in particular producers of condensed milk, soda and canned fruits, to increase their retail prices as sugar prices remain unchanged.
Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.
The unavoidable increase of Bt5 a litre will directly affect transportation costs and the production costs of manufacturers, it said.
Construction materials are on a list of goods for which prices are controlled. The ministry recently extended price-control measures on the list of goods until the end of the year.
High on the ministry's agenda at present is the enhancement of domestic consumption in line with the government's Thai Khemkhaeng project.
Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.
"Money from the Thai Khemkhaeng project, which will soon be injected into public investment, will partly stimulate growth in the construction industry. The government will try to curb the retail prices of these products to ensure a lower burden on consumers, while traders will not take the opportunity to increase their retail prices," Porntiva said.
After inspecting the prices of construction materials on Monday, the ministry found that most prices were within its recommendations.
As of September 2, the price of steel rod had increased slightly from Bt107.29 in August to Bt109.78, or from Bt21,500 to Bt22,000 per tonne. The retail price of mixed cement (Tiger brand) is quoted at Bt135 to Bt142 per 50-kilo bag, lower than the ministry's recommended price of Bt144 per bag. Portland cement (Elephant brand) is quoted at Bt145 to Bt156 per bag, while the recommended price is Bt161.
Internal Trade Department director-general Yangyong Phuangrach said the ministry would only consider allowing steel prices to increase if domestic diesel prices rose by another Bt5 per litre.
"The department will control prices as there are no serious negative factors to increase production costs for the remainder of this year," he said.
Moreover, he said the department would not allow any producers, in particular producers of condensed milk, soda and canned fruits, to increase their retail prices as sugar prices remain unchanged.
Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.
SCG sees cement demand pick up
Thailand's cement demand is expected to rise in the second half of this year,due mainly to the start of construction of the government's megaprojects, said Siam Cement Group (SCG) Thailand's largest industrial conglomerate.
Disbursements of the central budget for megaprojects, part of the economic stimulus packages, will begin this quarter and help revive the local economy,said Pramote Techasupatkul, president of SCG Cement.
"Our economy has suffered for several years due to domestic political conflicts and the global economic slump.Now it begins to get better and growth should resume. From 2008 to the first half of this year, the cement industry was in a bad shape," said Mr Pramote.
Despite the bright prospect in the second half of the year, SCG expected to see total domestic cement consumption on par with last year's level, at 24 million tonnes, because of a 10% contraction in the first half, he said.
For SCG Cement, he expected domestic sales to be on par with last year at 9-10 million tonnes in line with the domestic market.
Mr Pramote also anticipated another 8-9 million tonnes to be shipped to export markets, resulting in total sales volume of 17-19 million tonnes, also the same level as last year.
"Demand in the first half of this year sank so steeply that even the recovery of demand in the second half could not offset the decline," Mr Pramote said.
Demand for cement peaked in 2007 at 28 million tonnes before sliding by 4 million to 24 million tonnes.
SCG has tackled the drop of demand by introducing innovative cement products aimed at new segments to offset the dwindling sales of conventional cement products. It has also explored new markets such as Africa and South Asian countries.
SCG started to shift its focus from the United States, which accounts for half of total sales volume, to other markets such as Africa and South Asia since 2006 after seeing its sales in the world's largest economy decline gradually.
Before the oil price crisis of 2007-2008,SCG spent 180 million baht on research and development for new cement products to tap into niche markets such as concentrated cement, which helps cut construction costs.
Last year, SCG launched aggregates cement to serve demand for energy saving in the farm sector.
It also invested 5.8 billion baht to improve energy consumption at its production facilities.
Its heat waste recovery programme could cut power bills by 280 million baht in the first quarter this year and cut greenhouse gas emissions annually by 300,000 tonnes.
SCG yesterday also re-launched its marine cement in order to expand its customer base to cover resort operators.
Marine cement has been developed to be resistant to corrosion by seawater,making it last as long as 40 years compared with 20 years for conventional cement.
SCG expects the sales of its marine cement to gradually rise to 100 million baht over the next 4-5 years from a marginal level now.
Shares of SCC closed on the Stock Exchange of Thailand yesterday at 231 baht, up two baht, in trade worth 455.4 million baht.
Disbursements of the central budget for megaprojects, part of the economic stimulus packages, will begin this quarter and help revive the local economy,said Pramote Techasupatkul, president of SCG Cement.
"Our economy has suffered for several years due to domestic political conflicts and the global economic slump.Now it begins to get better and growth should resume. From 2008 to the first half of this year, the cement industry was in a bad shape," said Mr Pramote.
Despite the bright prospect in the second half of the year, SCG expected to see total domestic cement consumption on par with last year's level, at 24 million tonnes, because of a 10% contraction in the first half, he said.
For SCG Cement, he expected domestic sales to be on par with last year at 9-10 million tonnes in line with the domestic market.
Mr Pramote also anticipated another 8-9 million tonnes to be shipped to export markets, resulting in total sales volume of 17-19 million tonnes, also the same level as last year.
"Demand in the first half of this year sank so steeply that even the recovery of demand in the second half could not offset the decline," Mr Pramote said.
Demand for cement peaked in 2007 at 28 million tonnes before sliding by 4 million to 24 million tonnes.
SCG has tackled the drop of demand by introducing innovative cement products aimed at new segments to offset the dwindling sales of conventional cement products. It has also explored new markets such as Africa and South Asian countries.
SCG started to shift its focus from the United States, which accounts for half of total sales volume, to other markets such as Africa and South Asia since 2006 after seeing its sales in the world's largest economy decline gradually.
Before the oil price crisis of 2007-2008,SCG spent 180 million baht on research and development for new cement products to tap into niche markets such as concentrated cement, which helps cut construction costs.
Last year, SCG launched aggregates cement to serve demand for energy saving in the farm sector.
It also invested 5.8 billion baht to improve energy consumption at its production facilities.
Its heat waste recovery programme could cut power bills by 280 million baht in the first quarter this year and cut greenhouse gas emissions annually by 300,000 tonnes.
SCG yesterday also re-launched its marine cement in order to expand its customer base to cover resort operators.
Marine cement has been developed to be resistant to corrosion by seawater,making it last as long as 40 years compared with 20 years for conventional cement.
SCG expects the sales of its marine cement to gradually rise to 100 million baht over the next 4-5 years from a marginal level now.
Shares of SCC closed on the Stock Exchange of Thailand yesterday at 231 baht, up two baht, in trade worth 455.4 million baht.
Government to monitor construction materials
The government will closely monitor the prices of construction materials,which are expected to rise due to increasing demand from accelerated statebacked infrastructure and investment programmes.
The stagnant construction industry is expected to receive a much needed shot in the arm in the final quarter from the government's second round of economic stimulus measures.
The 1.45-trillion-baht package, named "Thailand: Investing from Strength to Strength", would drive demand in the last three months of the year, said Commerce Minister Porntiva Nakasai.
Increased demand would cause the price of raw materials to also rise.
Domestic prices of building materials have started to pick up over the last two months,but the increase is yet to pass the ceiling recommended by the Internal Trade Department, according to the ministry's Porntiva: Aiming to latest survey.avoid price hikes.Mixed cement prices as of yesterday had increased to 140 to 145 baht for a 50-kilogramme pack compared with 135 to 142 baht in August. But prices of Portland cement dropped by 5 baht to 145 to 155 baht per pack in the same period.
Nine-millimetre steel bar rose by 2 baht to 109 baht per bar since August,while 100 metres of domestic electric wire increased by 22 baht to 621 baht due to surging global copper prices.
The ITD-recommended cap for mixed cement is 150 baht per 50kg pack, with the prices of Portland cement set at 160 baht, and 9mm steel bar at 136.75 baht.
Construction materials is one of 202 products on the ITD's priority watch list. Officials check the prices of those items twice a week to prevent unwarranted price increases.
Mrs Porntiva said the ministry was due to meet construction material manufacturers and distributors next week to discuss price trends and ask them to maintain the prices until the year-end.
Prices may have to be revised up if raw material costs have increased, she said.
The stagnant construction industry is expected to receive a much needed shot in the arm in the final quarter from the government's second round of economic stimulus measures.
The 1.45-trillion-baht package, named "Thailand: Investing from Strength to Strength", would drive demand in the last three months of the year, said Commerce Minister Porntiva Nakasai.
Increased demand would cause the price of raw materials to also rise.
Domestic prices of building materials have started to pick up over the last two months,but the increase is yet to pass the ceiling recommended by the Internal Trade Department, according to the ministry's Porntiva: Aiming to latest survey.avoid price hikes.Mixed cement prices as of yesterday had increased to 140 to 145 baht for a 50-kilogramme pack compared with 135 to 142 baht in August. But prices of Portland cement dropped by 5 baht to 145 to 155 baht per pack in the same period.
Nine-millimetre steel bar rose by 2 baht to 109 baht per bar since August,while 100 metres of domestic electric wire increased by 22 baht to 621 baht due to surging global copper prices.
The ITD-recommended cap for mixed cement is 150 baht per 50kg pack, with the prices of Portland cement set at 160 baht, and 9mm steel bar at 136.75 baht.
Construction materials is one of 202 products on the ITD's priority watch list. Officials check the prices of those items twice a week to prevent unwarranted price increases.
Mrs Porntiva said the ministry was due to meet construction material manufacturers and distributors next week to discuss price trends and ask them to maintain the prices until the year-end.
Prices may have to be revised up if raw material costs have increased, she said.
Saturday, September 19, 2009
SCG focuses on overseas coal trading
Siam Cement Group (SCG), Thailand's top industrial conglomerate, is ramping up its coal trading business overseas by opening processing and distributing hubs in Southeast Asia, China and India.
The expansion is expected to lift coal trading by 40-50% in value and turnover next year, said Kalin Sarasin, managing director of SCT Co, a trading arm of SCG.
By the third quarter of 2010, SCT will open hubs in south China, India, Malaysia and the Philippines, each at an investment of 20-30 million baht, he said.
SCT operates two coal hubs in Thailand, and one each in Cambodia, Vietnam and the Philippines.
Coal demand from food, cement,paper and cloth dye sectors is growing.With economies in Malaysia, the Philippines and Indonesia picking up while China's swells, coal demand should surge next year, Mr Kalin said.
SCT has about 30 major clients in Thailand that consume 3,000 tonnes of coal per month, and 100 smaller-scale clients with sales of 300 to 1,000 tonnes.Sales to small clients climbed to 300,000 tonnes in the first eight months from 180,000 tonnes a year earlier, he said.
The company sources coal from Indonesia's Sumatra and the Kalimantan portion of Borneo.
But sales are set to decrease to 3 million tonnes from 3.5 million last year after demand plunged in the first quarter.
Coal sales amount to 17-20% of SCT's core energy business. Other products include recycled goods and industrial products such as plastic, aluminum, tapioca, cement and other building materials.
Mr Kalin said SCT was also going to import biomass materials from Singapore in the current quarter to expand its energy business that had sourced products locally. It is also investing 60 million baht on a coal mixture pilot project in Ayutthaya that will create a value-added product to replace bunker oil to heat boilers.
The project is commercially viable when coal is $70 per tonne, as now. The coal mixture is 20% cheaper than bunker oil, he said.
SCT has 32 offices in 21 countries including Australia, Hong Kong, Taiwan,the US, Bangladesh, the UAE and Jordan.
SCG's coal business is the first of its kind in Thailand with the ISO 14001 environmental standard and the OHASAS 18001 standard for employees welfare.
Shares of Siam Cement (SCC) closed yesterday at 299 baht, up three baht, in trade worth 1.53 billion baht.
The expansion is expected to lift coal trading by 40-50% in value and turnover next year, said Kalin Sarasin, managing director of SCT Co, a trading arm of SCG.
By the third quarter of 2010, SCT will open hubs in south China, India, Malaysia and the Philippines, each at an investment of 20-30 million baht, he said.
SCT operates two coal hubs in Thailand, and one each in Cambodia, Vietnam and the Philippines.
Coal demand from food, cement,paper and cloth dye sectors is growing.With economies in Malaysia, the Philippines and Indonesia picking up while China's swells, coal demand should surge next year, Mr Kalin said.
SCT has about 30 major clients in Thailand that consume 3,000 tonnes of coal per month, and 100 smaller-scale clients with sales of 300 to 1,000 tonnes.Sales to small clients climbed to 300,000 tonnes in the first eight months from 180,000 tonnes a year earlier, he said.
The company sources coal from Indonesia's Sumatra and the Kalimantan portion of Borneo.
But sales are set to decrease to 3 million tonnes from 3.5 million last year after demand plunged in the first quarter.
Coal sales amount to 17-20% of SCT's core energy business. Other products include recycled goods and industrial products such as plastic, aluminum, tapioca, cement and other building materials.
Mr Kalin said SCT was also going to import biomass materials from Singapore in the current quarter to expand its energy business that had sourced products locally. It is also investing 60 million baht on a coal mixture pilot project in Ayutthaya that will create a value-added product to replace bunker oil to heat boilers.
The project is commercially viable when coal is $70 per tonne, as now. The coal mixture is 20% cheaper than bunker oil, he said.
SCT has 32 offices in 21 countries including Australia, Hong Kong, Taiwan,the US, Bangladesh, the UAE and Jordan.
SCG's coal business is the first of its kind in Thailand with the ISO 14001 environmental standard and the OHASAS 18001 standard for employees welfare.
Shares of Siam Cement (SCC) closed yesterday at 299 baht, up three baht, in trade worth 1.53 billion baht.
Wednesday, September 16, 2009
Building material demand up
The outlook is improving for steel and other construction materials with domestic demand reviving while prices surge with the global rebound, say analysts and executives.
Cement prices have risen 600 baht per tonne in the past two months, on expectations that the government's economic stimulus package will drive demand to resume annualised growth from the final quarter.
Steel prices have also increased, with hot-rolled steel prices now quoted at almost US$600 per tonne, compared with the bottom of $400 reached earlier this year, according to the Iron and Steel Institute of Thailand.
"Domestic prices have started picking up while demand has increased globally," said the institute's director, Vikrom Vajragupta."Prospects are clear that demand from the construction sector will be higher in the next couple of months when the rainy season ends."
The automotive industry is also recovering while the government's Thai Kem Kaeng -"Thailand: Investing from Strength to Strength"- infrastructure programme will further drive demand in the last three months of the year, he added.
Pichit Maipoom, president of SCG Building Materials, said the demand for building materials had improved since the second quarter, especially in the provincial market.
"We expect the industry in the second half will be on par with that of the same period of last year," said Mr Pichit.
Siam City Cement Plc (SCCC), Thailand's second-largest cement maker,also expects a better performance in the second half as demand for the entire year is projected to slide only 5-7% to 24-25 million tonnes.
"The overall situation is getting better in the latter half both domestically and globally," said SCCC's executive vicepresident Chantana Sukumanont."The local market in 2010 will be flat from this year in the worst case."
SCCC, which exports one-third of its output, expects its sales volume to be in line with the overall market this year.
Analysts are also upbeat on the industry's outlook, saying construction material stocks have surged by about 10% over the past week on expectation of benefits from government stimulus spending and projected better performance in the current quarter.
Tata Steel (Thailand) Plc (TSTH), the country's largest producer of construction steel, will be among the main beneficiaries as the domestic price for steel bars has edged up from 16-17 baht per kilogramme to almost 20 baht at present,said Surachai Pramuancharoenkit, an analyst at Kim Eng Securities.
Kim Eng expects domestic demand for cement to grow 10% in 2010 after falling 5% this year. The brokerage has raised SCCC's net profit estimates. It now projects 2009 earnings to be relatively unchanged from 2008, before jumping 22% to 3.83 billion baht next year.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 219 baht, up four baht, in trade worth 381 million baht. SCCC also rose four baht to 222 baht in trade worth 9.38 million baht. TSTH closed unchanged at two baht in trade worth 111 million baht.
Cement prices have risen 600 baht per tonne in the past two months, on expectations that the government's economic stimulus package will drive demand to resume annualised growth from the final quarter.
Steel prices have also increased, with hot-rolled steel prices now quoted at almost US$600 per tonne, compared with the bottom of $400 reached earlier this year, according to the Iron and Steel Institute of Thailand.
"Domestic prices have started picking up while demand has increased globally," said the institute's director, Vikrom Vajragupta."Prospects are clear that demand from the construction sector will be higher in the next couple of months when the rainy season ends."
The automotive industry is also recovering while the government's Thai Kem Kaeng -"Thailand: Investing from Strength to Strength"- infrastructure programme will further drive demand in the last three months of the year, he added.
Pichit Maipoom, president of SCG Building Materials, said the demand for building materials had improved since the second quarter, especially in the provincial market.
"We expect the industry in the second half will be on par with that of the same period of last year," said Mr Pichit.
Siam City Cement Plc (SCCC), Thailand's second-largest cement maker,also expects a better performance in the second half as demand for the entire year is projected to slide only 5-7% to 24-25 million tonnes.
"The overall situation is getting better in the latter half both domestically and globally," said SCCC's executive vicepresident Chantana Sukumanont."The local market in 2010 will be flat from this year in the worst case."
SCCC, which exports one-third of its output, expects its sales volume to be in line with the overall market this year.
Analysts are also upbeat on the industry's outlook, saying construction material stocks have surged by about 10% over the past week on expectation of benefits from government stimulus spending and projected better performance in the current quarter.
Tata Steel (Thailand) Plc (TSTH), the country's largest producer of construction steel, will be among the main beneficiaries as the domestic price for steel bars has edged up from 16-17 baht per kilogramme to almost 20 baht at present,said Surachai Pramuancharoenkit, an analyst at Kim Eng Securities.
Kim Eng expects domestic demand for cement to grow 10% in 2010 after falling 5% this year. The brokerage has raised SCCC's net profit estimates. It now projects 2009 earnings to be relatively unchanged from 2008, before jumping 22% to 3.83 billion baht next year.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 219 baht, up four baht, in trade worth 381 million baht. SCCC also rose four baht to 222 baht in trade worth 9.38 million baht. TSTH closed unchanged at two baht in trade worth 111 million baht.
Sunday, September 13, 2009
SCG sets up prefab venture with Sekisui
Prefabrication technology that can be used to complete a house in just three months is being introduced in Thailand through joint ventures between Siam Cement Group (SCG) and Japan's Sekisui Chemical.
With Modular Home technology from Sekisui, Japan's first and largest manufacturer of its kind, about 80% of house components are made in a factory and assembled into modules to be installed within one or two days on the construction site, said Pichit Maipoom, president of SCG Building Materials.
SCG, Thailand's largest manufacturer of building materials, plans to officially launch the modular homes for Thai customers early next year with a sales target of 100 units by the end of 2010. Annual sales are expected to hit 220 units by 2011, generating revenue of 1 billion baht per year, he said.
SCG yesterday signed two joint venture agreements with the Japanese partner.
Sekisui-SCG Industry Co, owned 51:49 by SCG and Sekisui with registered capital of 200 million baht, will manufacture the modular home components at SCG's factory in Saraburi.
SCG-Sekisui Sales Co, in which SCG controls 51% and Sekisui 49%with registered capital of 100 million baht, will sell and install the housing components.
The joint ventures target the highend of the housing market, which accounts for 10% of the 400,000 units built every year, said Mr Pichit.
Modular homes will be priced at 25,000 baht per square metre - or about 2.5 million for a 100-square-metre house.
Thailand is the first overseas market for Sekisui, which has offered modular home technology in Japan since 1970,said Teiji Koge, president of Sekisui Housing Co.
There are 450,000 Sekisui modular homes in Japan, where their sales last year generated 140 billion baht or 45%of the company's business.
"Thailand has a potential for developing this business. Combined with SCG's understanding of customer needs and the housing market, as well as its strong distribution channel, I believe this collaboration will answer Thai consumers' demands for convenient living,"said Mr Koge.
Wachirachai Koonamwattana, who is in charge of SCG's modular home technology project, said the technology would be aimed at end users, home developers and builders, starting in Bangkok and nearby provinces.
"We will offer customer care services,including home design and 20-year guarantees of the house structure and foundations, as well as equipment and systems. Besides, we will assist customers seeking construction licences and bank loans," said Mr Wachirachai.
If the launch is successful, SCG may build factories for producing modular homes elsewhere in the country, said Mr Pichit.
Siam Cement (SCC) shares closed yesterday on the SET at 219 baht, up 0.46,in trade worth 305.85 million baht.
With Modular Home technology from Sekisui, Japan's first and largest manufacturer of its kind, about 80% of house components are made in a factory and assembled into modules to be installed within one or two days on the construction site, said Pichit Maipoom, president of SCG Building Materials.
SCG, Thailand's largest manufacturer of building materials, plans to officially launch the modular homes for Thai customers early next year with a sales target of 100 units by the end of 2010. Annual sales are expected to hit 220 units by 2011, generating revenue of 1 billion baht per year, he said.
SCG yesterday signed two joint venture agreements with the Japanese partner.
Sekisui-SCG Industry Co, owned 51:49 by SCG and Sekisui with registered capital of 200 million baht, will manufacture the modular home components at SCG's factory in Saraburi.
SCG-Sekisui Sales Co, in which SCG controls 51% and Sekisui 49%with registered capital of 100 million baht, will sell and install the housing components.
The joint ventures target the highend of the housing market, which accounts for 10% of the 400,000 units built every year, said Mr Pichit.
Modular homes will be priced at 25,000 baht per square metre - or about 2.5 million for a 100-square-metre house.
Thailand is the first overseas market for Sekisui, which has offered modular home technology in Japan since 1970,said Teiji Koge, president of Sekisui Housing Co.
There are 450,000 Sekisui modular homes in Japan, where their sales last year generated 140 billion baht or 45%of the company's business.
"Thailand has a potential for developing this business. Combined with SCG's understanding of customer needs and the housing market, as well as its strong distribution channel, I believe this collaboration will answer Thai consumers' demands for convenient living,"said Mr Koge.
Wachirachai Koonamwattana, who is in charge of SCG's modular home technology project, said the technology would be aimed at end users, home developers and builders, starting in Bangkok and nearby provinces.
"We will offer customer care services,including home design and 20-year guarantees of the house structure and foundations, as well as equipment and systems. Besides, we will assist customers seeking construction licences and bank loans," said Mr Wachirachai.
If the launch is successful, SCG may build factories for producing modular homes elsewhere in the country, said Mr Pichit.
Siam Cement (SCC) shares closed yesterday on the SET at 219 baht, up 0.46,in trade worth 305.85 million baht.
Saturday, September 12, 2009
SIAM CEMENT UNIT IN JVS FOR MODULAR HOME TECHNOLOGY
SCG Building Materials has formed two joint ventures with a Japanese partner to introduce a new home-building technology to the Thai market.
The joint ventures with Sekisui Chemical aim to generate annual revenue of Bt1 billion by 2011.
President Pichit Maipoom said Sekisui-SCG Industry would be responsible for making housing components using modular-home technology, while SCG-Sekisui Sales would take care of sales and installation.
Sekisui-SCG has registered capital of Bt200 million, in which SCG Building Materials holds a 49-per-cent stake, while the remainder is acquired by the Japanese firm.
For SCG-Sekisui Sales, SCG Building Materials holds a 51 per-cent stake and Sekisui holds 49 per cent.
A factory in Saraburi will produce house components and assemble them into modules for installation at clients' location.
The annual capacity is 220 units of per year.
"We expect to sell 100 units by the end of next year," Pichit said, adding that the partner would transfer its technology to SCG Building Materials, which will supply more than 80 per cent of the components of the homes.
Teiji Koge, president of Sekisui Housing, a unit of Sekisui Chemical, said Thailand was the first foreign market for its products.
Sekisui was established in 1947 as a plastics company. The conglomerate now has several businesses, namely high performance plastics, urban infrastructure and environmental products as well as the housing business.
The environmental products and housing business is now the biggest, accounting for 45 per cent of total revenue last year (ended March 2009) or roughly Bt140 billion. It constructs about 20,000 housing units per year in Japan, where 80 per cent of house components are produced in the factory and assembled into modules ready to be installed on site.
The installing process takes only one or two days.
Wachirachai Koonamwattana, executive manager of the Modular Home Technology Project, said the cost of a modular home was roughly Bt25,000 per square metre, depending on the type and quality of building material.
The minimum home size is 100 square metres. So these homes are in the premium segment.
The strength of modular homes are that they are energy efficient and are more economical than other houses over a 30-year cycle.
The joint ventures with Sekisui Chemical aim to generate annual revenue of Bt1 billion by 2011.
President Pichit Maipoom said Sekisui-SCG Industry would be responsible for making housing components using modular-home technology, while SCG-Sekisui Sales would take care of sales and installation.
Sekisui-SCG has registered capital of Bt200 million, in which SCG Building Materials holds a 49-per-cent stake, while the remainder is acquired by the Japanese firm.
For SCG-Sekisui Sales, SCG Building Materials holds a 51 per-cent stake and Sekisui holds 49 per cent.
A factory in Saraburi will produce house components and assemble them into modules for installation at clients' location.
The annual capacity is 220 units of per year.
"We expect to sell 100 units by the end of next year," Pichit said, adding that the partner would transfer its technology to SCG Building Materials, which will supply more than 80 per cent of the components of the homes.
Teiji Koge, president of Sekisui Housing, a unit of Sekisui Chemical, said Thailand was the first foreign market for its products.
Sekisui was established in 1947 as a plastics company. The conglomerate now has several businesses, namely high performance plastics, urban infrastructure and environmental products as well as the housing business.
The environmental products and housing business is now the biggest, accounting for 45 per cent of total revenue last year (ended March 2009) or roughly Bt140 billion. It constructs about 20,000 housing units per year in Japan, where 80 per cent of house components are produced in the factory and assembled into modules ready to be installed on site.
The installing process takes only one or two days.
Wachirachai Koonamwattana, executive manager of the Modular Home Technology Project, said the cost of a modular home was roughly Bt25,000 per square metre, depending on the type and quality of building material.
The minimum home size is 100 square metres. So these homes are in the premium segment.
The strength of modular homes are that they are energy efficient and are more economical than other houses over a 30-year cycle.
Thursday, September 10, 2009
US STEEL PUSHES OBAMA TO CHOOSE WORKERS OVER TRADE
As presidential candidate Barack Obama pledged to stand up for workers by cracking down on imports from China.
Now President, Obama has promised to fight protectionism and trade barriers.
His administration must decide which path to take in two of the biggest US trade cases against China.
US Steel and the United Steelworkers Union are behind a complaint on imported pipe. The union, an Obama political ally, is also pushing for curbs on Chinese auto tyres.
"These are decisions that can't be avoided, so they'll be perceived as setting the tone for what the Obama administration trade policy is," said Timothy Keeler, the former chief of staff for the US Trade Representative's office. Keeler, a lawyer at Mayer Brown in Washington, represents GITI Tyre, the largest Chinese maker of tyres, in the trade case.
The decisions may help shape the future of US-China commercial relations. The two countries trade totalled more than $400 billion (Bt13.7 trillion) last year, making China the second largest US trading partner after Canada. China is also the largest foreign holder of US debt, with $776.4 billion.
The US International Trade Commission, an independent body, has ruled against Chinese importers in both cases. Because the complaints were brought under different provisions of trade law, the Commerce Department has the final say over tariffs on the pipe, used in oil and gas drilling, and Obama will make the call on tyres.
In a ruling scheduled to be released today, the Commerce Department must decide whether to place duties on $2.8 billion in steelpipe imports from China to compensate for subsidies that Chinese companies collect. The case was brought by the steelworkers; US Steel, the largest US-based steelmaker; US operations of Evraz Group, Russia's second-largest steelmaker; and Wheatland Tube.
The case is the largest so-called countervailing duty and dumping case filed against China, according to daniel Porter, a lawyer for Winston and Strawn, which represents Chinese producers in the case.
Obama must decide by September 17 on a petition by the steelworkers to cap or put tariffs on imports of $1.7 billion of tyres from China. It is a test of whether Obama will make good on a campaign pledge to reverse course from former President George W Bush and apply the so-called safeguard measures.
Bush turned down all four requests he received to impose duties or quotas on Chinese imports, saying the benefits of protection would be dwarfed by the costs. During the presidential campaign, Obama told the textile industry in a letter on October 24, 2008, that he would "decide those cases on their merits".
"The one thing that is on the line here is the president's credibility," said Scott Paul, executive director of the Alliance for American Manufacturing, a coalition of steel companies such as US Steel and the Steelworkers Union.
On April 14, 2008, presidential candidate Obama spoke to the United Steelworkers in Pittsburgh, a week before the contested Democratic primary in Pennsylvania.
"I have consistently supported in the Senate going after China," Obama said then, after embracing union president leo Gerard. "Here's the thing that people don't understand: China needs our market. Their economy is dependent on exports to the United States. We have bargaining power."
Obama, referring to China's purchase of US Treasuries, added this caveat: "It's pretty hard to argue with your banker," he said. "That's part of our problem with China."
Now President, Obama has promised to fight protectionism and trade barriers.
His administration must decide which path to take in two of the biggest US trade cases against China.
US Steel and the United Steelworkers Union are behind a complaint on imported pipe. The union, an Obama political ally, is also pushing for curbs on Chinese auto tyres.
"These are decisions that can't be avoided, so they'll be perceived as setting the tone for what the Obama administration trade policy is," said Timothy Keeler, the former chief of staff for the US Trade Representative's office. Keeler, a lawyer at Mayer Brown in Washington, represents GITI Tyre, the largest Chinese maker of tyres, in the trade case.
The decisions may help shape the future of US-China commercial relations. The two countries trade totalled more than $400 billion (Bt13.7 trillion) last year, making China the second largest US trading partner after Canada. China is also the largest foreign holder of US debt, with $776.4 billion.
The US International Trade Commission, an independent body, has ruled against Chinese importers in both cases. Because the complaints were brought under different provisions of trade law, the Commerce Department has the final say over tariffs on the pipe, used in oil and gas drilling, and Obama will make the call on tyres.
In a ruling scheduled to be released today, the Commerce Department must decide whether to place duties on $2.8 billion in steelpipe imports from China to compensate for subsidies that Chinese companies collect. The case was brought by the steelworkers; US Steel, the largest US-based steelmaker; US operations of Evraz Group, Russia's second-largest steelmaker; and Wheatland Tube.
The case is the largest so-called countervailing duty and dumping case filed against China, according to daniel Porter, a lawyer for Winston and Strawn, which represents Chinese producers in the case.
Obama must decide by September 17 on a petition by the steelworkers to cap or put tariffs on imports of $1.7 billion of tyres from China. It is a test of whether Obama will make good on a campaign pledge to reverse course from former President George W Bush and apply the so-called safeguard measures.
Bush turned down all four requests he received to impose duties or quotas on Chinese imports, saying the benefits of protection would be dwarfed by the costs. During the presidential campaign, Obama told the textile industry in a letter on October 24, 2008, that he would "decide those cases on their merits".
"The one thing that is on the line here is the president's credibility," said Scott Paul, executive director of the Alliance for American Manufacturing, a coalition of steel companies such as US Steel and the Steelworkers Union.
On April 14, 2008, presidential candidate Obama spoke to the United Steelworkers in Pittsburgh, a week before the contested Democratic primary in Pennsylvania.
"I have consistently supported in the Senate going after China," Obama said then, after embracing union president leo Gerard. "Here's the thing that people don't understand: China needs our market. Their economy is dependent on exports to the United States. We have bargaining power."
Obama, referring to China's purchase of US Treasuries, added this caveat: "It's pretty hard to argue with your banker," he said. "That's part of our problem with China."
Tuesday, September 8, 2009
CONWOOD MULLS BT500M PLAN TO BOOST OUTPUT
Conwood, a manufacturer of products that look like, and replace, wood in buildings, will spend Bt400 million to Bt500 million next year to increase its production capacity - if the economy recovers.
Conwood is a subsidiary of Siam City Cement, the country's secondlargest cement manufacturer.
CEO Suthipan Wacharopas said the company had sufficient cash flow and good credit for borrowing from banks to finance the investment.
At present, Conwood has a production capacity of 90,000 tonnes a year and would like to increase it by another 45,000 tonnes a year, to serve both domestic and international markets.
It had planned to proceed with the plan this year, in conjunction with an aggressive exporting campaign covering mainly Asian markets. However, the plan was deferred, due to the gloomy economic conditions.
Suthipan believes the market for wood-replacement products will likely recover in this year's fourthe quarter, following signs of improvement in the real-estate industry.
"If the real-estate business recovers - like many business figures in this industry predict - and there is no violence in Thailand's political situation next year, we're possibly going to invest roughly Bt500 million to expand the company's capacity in 2010," he said.
The domestic market for woodreplacement products has not been good this year, in line with the realestate industry. Conwood's first-half revenue fell 3 per cent year on year, and despite the expected recovery in the fourth quarter, it expects revenue this year of Bt800 million, down slightly from last year.
Suthipan said Conwood earlier hoped export sales would boost its revenue this year, but the outlook in foreign markets is no better than that at home. Taiwan is Conwood's only new export market this year. It also exports to Vietnam, Malaysia, Indonesia and the Philippines.
Conwood maintains its target for foreign markets to contribute 12.5 per cent of expected revenue of Bt1.2 billion in 2012.
Conwood is a subsidiary of Siam City Cement, the country's secondlargest cement manufacturer.
CEO Suthipan Wacharopas said the company had sufficient cash flow and good credit for borrowing from banks to finance the investment.
At present, Conwood has a production capacity of 90,000 tonnes a year and would like to increase it by another 45,000 tonnes a year, to serve both domestic and international markets.
It had planned to proceed with the plan this year, in conjunction with an aggressive exporting campaign covering mainly Asian markets. However, the plan was deferred, due to the gloomy economic conditions.
Suthipan believes the market for wood-replacement products will likely recover in this year's fourthe quarter, following signs of improvement in the real-estate industry.
"If the real-estate business recovers - like many business figures in this industry predict - and there is no violence in Thailand's political situation next year, we're possibly going to invest roughly Bt500 million to expand the company's capacity in 2010," he said.
The domestic market for woodreplacement products has not been good this year, in line with the realestate industry. Conwood's first-half revenue fell 3 per cent year on year, and despite the expected recovery in the fourth quarter, it expects revenue this year of Bt800 million, down slightly from last year.
Suthipan said Conwood earlier hoped export sales would boost its revenue this year, but the outlook in foreign markets is no better than that at home. Taiwan is Conwood's only new export market this year. It also exports to Vietnam, Malaysia, Indonesia and the Philippines.
Conwood maintains its target for foreign markets to contribute 12.5 per cent of expected revenue of Bt1.2 billion in 2012.
Thursday, September 3, 2009
SPLASHING OUT AT HOME
"Waterfall size depends heavily on space,budget and a person's belief in feng shui.
"I've always been quite cautious, paying attention to details, so I decided to buy the insurance. Although I'm young, nobody knows the future and I don't want to leave the burden to my family.
Water has always played a vital role in nurturing all life. Apart from nourishing our body, water also refreshes our soul with its intrinsic miracles.
A vast array of household fountains dancing merrily at night can make the nocturnal ambiance more spectacular and vivacious.
The sound of water running through an artificial waterfall is able to soothe many souls seeking a bit of hydrotherapy at home.
Unsurprisingly, these two items are the latest hot feature in many households as some people want to live a healthier life amid the natural environment - and with these two choices they can get close to nature via the most simple and accessible channels.
"Fountains and remodelled waterfalls can exude a sense of cooling and serenity to the house and its inhabitants. Besides, many people also enjoy watching the running and dancing water and listening to its solacing sound," said Nuntapom Ketpongsuda, a landscape designer at Sea Square Thai.
"On top of that, these aquatic installations can be placed even in small areas since now they come in all sizes and designs to suit the vastly different lifestyles of city dwellers who rarely have time to appreciate natural beauty up close."
According to Nuntapom, today's artificial fountain, or nam pu pradit , comes in four styles including the ready-made fountain,made-to-order fountain, fountain with a sculpture or terracotta and big fountain, usually installed in the middle of a natural pond.
The ready-made fountain comes with a pump and a small tub which can be installed yourself. More importantly, it consumes less electricity.
The made-to-order fountain depends on the customers' needs and personal taste. Its size can be modified to suit a chosen location.
Fountains with a sculpture or terracotta can be very artistic and lively. This type is very popular as it gives garden lovers more stories to tell their guests. Most importantly,it can be located either inside or outside or at any corner of the house to enhance the atmosphere.
Big fountains are normally suitable for a large pond as they help oxygenate the water for plants and fish.
What makes each kind of artificial fountain different is the many sprinkle jets that can Yes, it can, beautifully and sometimes sexily.But "cold dancers" can lose their balance and give an inferior performance if they get dirty. So it is strongly recommended to keep these dancers clean from time to time to ensure their best performance.
According to Nuntapom, it is a piece of cake to maintain fountains of all types,especially small ones.
"It's as easy as cleaning other kitchen appliances so you can do it by yourself," he said.
Here are some tips provided by Nuntapom to keep the fountain cool and clean.
Keep water in the fountain tub full at all times as some kinds of pump will stop working or break if the water level is too low.
Keep the fountain and pump jets free from dirt. Regularly scoop out the basin to avoid clogging the jets.
If there is an electricity blackout, switch off the pump immediately to prevent any damage.
The fountain should be cleaned monthly or more.
Turn off electricity before cleaning the fountain.
Remove the fountain jet and carefully clean it to get rid of any clotted debris, mosses, and rotten leaves.
Remove the pump and also clean it according to the instructions.
Refill the water until it reaches the right level.
create unique "water sculptures".
Some kinds of sprinkler heads release a single line of water while others produce a spray. More sophisticated designs can give different layers to the fountain.
However, not all types of jets are compatible with all fountains. For example, a big sprinkler head is perfect only for a large basin.
But if it is used with a smaller basin, water can spill out from the edge of the basin,
making the entire area wet and slippery.
More importantly, water inside the basin must be refilled more frequently which can result in a higher charge for electricity and water.
On the contrary, if a small fountain jet is installed in a large pond, it will yield no aesthetic impact at all. So the size of the fountain should be in line with that of its basin.
"When it comes to the selection of a fountain, homeowners should take many things into consideration like its style, size and price.They should not consider only their personal penchant because only the right fountain is congruous with the right location," said Nuntapom.
According to Nuntapom, the ideal place to install a fountain should not be under trees since fallen leaves can make the fountain tub or pond dirty more easily. And it should not be located in a windy area as the wind can blow away the fountain's stream.
As for the remodelled waterfall, it is mainly categorised into four designs including the ready-made waterfall made from rock or concrete, those made from plastic or resin, fibreglass waterfalls and made-to-order waterfalls made from various kinds of materials such as natural and artificial rocks.
According to Nuntapom, the first type is rather small but heavy, ranging from 3kg to 100kg. It can be used to decorate a tray garden or installed in a vast garden.
Plastic and resin waterfalls are mainly used for the tray or glass tank garden.
For those who want an endurable product,the fibreglass waterfall can serve the purpose.Its styles are varied, depending on the manufacturers' imagination and expertise.The last pattern has no fixed design. Its price is a bit exorbitant, starting from five to six digits, depending on its size and components.
"Waterfall size depends heavily on space,budget and a person's belief in feng shui,"said Nuntapom.
No matter how beautiful or expensive they are, both fountains and waterfalls of all designs can become an eyesore in no time if left unused.
"If you want to see them as gleaming like new, you should take care of them with your heart. Long-term maintenance is crucial. If part of your happiness comes from these two sources, you should take good care of your sources of happiness. Don't just follow the fad," stressed Nuntapom.
"I've always been quite cautious, paying attention to details, so I decided to buy the insurance. Although I'm young, nobody knows the future and I don't want to leave the burden to my family.
Water has always played a vital role in nurturing all life. Apart from nourishing our body, water also refreshes our soul with its intrinsic miracles.
A vast array of household fountains dancing merrily at night can make the nocturnal ambiance more spectacular and vivacious.
The sound of water running through an artificial waterfall is able to soothe many souls seeking a bit of hydrotherapy at home.
Unsurprisingly, these two items are the latest hot feature in many households as some people want to live a healthier life amid the natural environment - and with these two choices they can get close to nature via the most simple and accessible channels.
"Fountains and remodelled waterfalls can exude a sense of cooling and serenity to the house and its inhabitants. Besides, many people also enjoy watching the running and dancing water and listening to its solacing sound," said Nuntapom Ketpongsuda, a landscape designer at Sea Square Thai.
"On top of that, these aquatic installations can be placed even in small areas since now they come in all sizes and designs to suit the vastly different lifestyles of city dwellers who rarely have time to appreciate natural beauty up close."
According to Nuntapom, today's artificial fountain, or nam pu pradit , comes in four styles including the ready-made fountain,made-to-order fountain, fountain with a sculpture or terracotta and big fountain, usually installed in the middle of a natural pond.
The ready-made fountain comes with a pump and a small tub which can be installed yourself. More importantly, it consumes less electricity.
The made-to-order fountain depends on the customers' needs and personal taste. Its size can be modified to suit a chosen location.
Fountains with a sculpture or terracotta can be very artistic and lively. This type is very popular as it gives garden lovers more stories to tell their guests. Most importantly,it can be located either inside or outside or at any corner of the house to enhance the atmosphere.
Big fountains are normally suitable for a large pond as they help oxygenate the water for plants and fish.
What makes each kind of artificial fountain different is the many sprinkle jets that can Yes, it can, beautifully and sometimes sexily.But "cold dancers" can lose their balance and give an inferior performance if they get dirty. So it is strongly recommended to keep these dancers clean from time to time to ensure their best performance.
According to Nuntapom, it is a piece of cake to maintain fountains of all types,especially small ones.
"It's as easy as cleaning other kitchen appliances so you can do it by yourself," he said.
Here are some tips provided by Nuntapom to keep the fountain cool and clean.
Keep water in the fountain tub full at all times as some kinds of pump will stop working or break if the water level is too low.
Keep the fountain and pump jets free from dirt. Regularly scoop out the basin to avoid clogging the jets.
If there is an electricity blackout, switch off the pump immediately to prevent any damage.
The fountain should be cleaned monthly or more.
Turn off electricity before cleaning the fountain.
Remove the fountain jet and carefully clean it to get rid of any clotted debris, mosses, and rotten leaves.
Remove the pump and also clean it according to the instructions.
Refill the water until it reaches the right level.
create unique "water sculptures".
Some kinds of sprinkler heads release a single line of water while others produce a spray. More sophisticated designs can give different layers to the fountain.
However, not all types of jets are compatible with all fountains. For example, a big sprinkler head is perfect only for a large basin.
But if it is used with a smaller basin, water can spill out from the edge of the basin,
making the entire area wet and slippery.
More importantly, water inside the basin must be refilled more frequently which can result in a higher charge for electricity and water.
On the contrary, if a small fountain jet is installed in a large pond, it will yield no aesthetic impact at all. So the size of the fountain should be in line with that of its basin.
"When it comes to the selection of a fountain, homeowners should take many things into consideration like its style, size and price.They should not consider only their personal penchant because only the right fountain is congruous with the right location," said Nuntapom.
According to Nuntapom, the ideal place to install a fountain should not be under trees since fallen leaves can make the fountain tub or pond dirty more easily. And it should not be located in a windy area as the wind can blow away the fountain's stream.
As for the remodelled waterfall, it is mainly categorised into four designs including the ready-made waterfall made from rock or concrete, those made from plastic or resin, fibreglass waterfalls and made-to-order waterfalls made from various kinds of materials such as natural and artificial rocks.
According to Nuntapom, the first type is rather small but heavy, ranging from 3kg to 100kg. It can be used to decorate a tray garden or installed in a vast garden.
Plastic and resin waterfalls are mainly used for the tray or glass tank garden.
For those who want an endurable product,the fibreglass waterfall can serve the purpose.Its styles are varied, depending on the manufacturers' imagination and expertise.The last pattern has no fixed design. Its price is a bit exorbitant, starting from five to six digits, depending on its size and components.
"Waterfall size depends heavily on space,budget and a person's belief in feng shui,"said Nuntapom.
No matter how beautiful or expensive they are, both fountains and waterfalls of all designs can become an eyesore in no time if left unused.
"If you want to see them as gleaming like new, you should take care of them with your heart. Long-term maintenance is crucial. If part of your happiness comes from these two sources, you should take good care of your sources of happiness. Don't just follow the fad," stressed Nuntapom.
Tuesday, September 1, 2009
VILLAGERS UP IN ARMS AGAINST HUGE PROJECT
A group of 500 villagers living near a huge steel-mill project in Prachuap Khiri Khan's Bang Saphan district yesterday gathered outside the Industry Ministry asking it not to permit construction while a pending administrative decision is not yet reached.
Protest leaders also demanded that Industry Minister Charnchai Chairungrueng give them a written promise that he would comply with their demand and nothing would be done against the villagers' will until he returned from an overseas trip on September 13.
Jintana Kaewkhao, a protest leader, said the Administrative Court had issued an injunction halting the project of Sahaviriya Steel Industry until mandatory environmental studies were finalised and disputes over land ownership settled. She also demanded that in future other projects that cause large-scale pollution should not be permitted near the district.
The group later submitted a request to a government agency at the Goverment House asking it to invalidate an environment impact assessment (EIA) result in favour of the public company. The assessment only had recommendations and opinions of government experts on science, technology and industry but left out those of doctors and experts on public health.
The Office of Natural Resources and Environmental Policy and Planning (ONEP) said later that it had twice rejected an earlier EIA submitted by the project owner, last time in July last year, because it was not complete on more than 100 issues.
Suchaya Amralikhit, a senior ONEP official, said those issues included conveyors of industrial materials were too near to communities, as were piles of those materials. The other issues, which still need improvements, are wastewater management, water drainage, impact on local tourism, public-health concerns and visual pollution.
ONEP also requires the project owner to propose measures to restore biodiversity in nearby forests and to accept comments from a local natural conservation group allied to the villagers.
Project owner Sahaviriya Steel Mill later issued a statement saying the project site was not located in a forest reserve, as alleged by villagers, thus the project was not the reason behind repeated flooding and pollution in the forest reserve and nearby areas.
Chaiphat Khemaphirak, a senior company official, said only a one-rai plot, out of the entire 222-rai project site, was located in an area adjacent to the forest reserve.
"The company has created a 123-rai buffer zone, where green projects are situated, between the project site and the forest reserve," he added.
He said the steel mill operation, when carried out, would generate pollution and industrial waste at a level under the legal limit. He added that Sahaviriya Group's entire corporate standard on health and environment management, which was certified by Mahidol University, was the best in the country.
Protest leaders also demanded that Industry Minister Charnchai Chairungrueng give them a written promise that he would comply with their demand and nothing would be done against the villagers' will until he returned from an overseas trip on September 13.
Jintana Kaewkhao, a protest leader, said the Administrative Court had issued an injunction halting the project of Sahaviriya Steel Industry until mandatory environmental studies were finalised and disputes over land ownership settled. She also demanded that in future other projects that cause large-scale pollution should not be permitted near the district.
The group later submitted a request to a government agency at the Goverment House asking it to invalidate an environment impact assessment (EIA) result in favour of the public company. The assessment only had recommendations and opinions of government experts on science, technology and industry but left out those of doctors and experts on public health.
The Office of Natural Resources and Environmental Policy and Planning (ONEP) said later that it had twice rejected an earlier EIA submitted by the project owner, last time in July last year, because it was not complete on more than 100 issues.
Suchaya Amralikhit, a senior ONEP official, said those issues included conveyors of industrial materials were too near to communities, as were piles of those materials. The other issues, which still need improvements, are wastewater management, water drainage, impact on local tourism, public-health concerns and visual pollution.
ONEP also requires the project owner to propose measures to restore biodiversity in nearby forests and to accept comments from a local natural conservation group allied to the villagers.
Project owner Sahaviriya Steel Mill later issued a statement saying the project site was not located in a forest reserve, as alleged by villagers, thus the project was not the reason behind repeated flooding and pollution in the forest reserve and nearby areas.
Chaiphat Khemaphirak, a senior company official, said only a one-rai plot, out of the entire 222-rai project site, was located in an area adjacent to the forest reserve.
"The company has created a 123-rai buffer zone, where green projects are situated, between the project site and the forest reserve," he added.
He said the steel mill operation, when carried out, would generate pollution and industrial waste at a level under the legal limit. He added that Sahaviriya Group's entire corporate standard on health and environment management, which was certified by Mahidol University, was the best in the country.
Subscribe to:
Posts (Atom)