SCG mortar unit commits B700m to expansion

       Siam Cement Group (SCG), the country's biggest industrial conglomerate, expects to invest about 700 million baht to lift its production capacity of ready-to-use cement to 2 million tonnes within two years.
       The plan is being considered after Siam Mortar Co, a building materials unit of SCG, has increased its market share in ready-to-use mortar to 50%through sales of 500,000 tonnes in the first six months.
       The company targets sales of one billion baht in 2009 and aims to double the figure within five years, said managing director Rewat Suriyapananont.
       "We are currently utilising 80% of the plant's capacity which totals 1.3 million tonnes per year," he said, adding that it had three manufacturing plants, two in Saraburi and another in Nakhon Sri Thammarat.
       "We aim to increase yearly capacity to between 1.8 million and 2 million tonnes within two years. The construction is likely to start early next year."
       Mr Rewat said Siam Mortar would likely to expand the capacity at the Saraburi site. The company is also considering other locations to build a new plant somewhere near Bangkok, where mortar demand is substantial, or in the eastern and southern regions, he said.
       "We have seen demand picking up substantially. Several hotel, resort and condominium projects in Phuket, for example, have resumed construction in the current quarter after they were suspended in the first half," said Mr Rewat.
       "The current market rebound prompts us to believe that the market will come back quickly next year with expected growth of 20% over this year."
       The overall ready-to-use mortar market is projected at 2 billion baht this year with sales volume of 2 million tonnes,an increase of 10% from 2008.
       Sales of Siam Mortar rose 15% over the first half and its share rose to 50%from 40% in the same period last year.
       TPI Polene is second in the segment with a 30% share and and Siam City Cement's Insee brand third with 10%.
       To maintain its leading position, Mr Rewat said Siam Mortar would step up the launches of innovative products and services such as hygienic mortar. Also,the company aims to transform itself from a manufacturer of mortar to a full solution provider, he said.
       Environmentally friendly products developed in line with SCG's Eco Value principle will also be in focus, he said.
       "Green products are currently in high demand and we expect also in the year to come because of concerns over global warming," Mr Rewat said.
       Shares of Siam Cement (SCC) closed on Friday on the Stock Exchange of Thailand at 220 baht, down three baht, in trade worth 586 million baht.