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.