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.