Channel 0117 Construction Materials and Equipment

“TIFF 2010” DEP proudly presents Thailand’s premier furniture showcase Under the concept of “Living A Green Life”

2010-02-07T04:40:00.001-08:00

The Department of Export Promotion (DEP) in collaboration with the Furniture Industry Club, the Federation of Thai Industries, and the Thai Furniture Industries Association, is organizing the Thailand International Furniture Fair 2010 (TIFF 2010), under the concept of “Living A Green Life”. This event gives business operators a chance to both exhibit their latest furniture designs and seek business partnerships. TIFF 2010 will take place during March 10th-14th, at IMPACT, Thailand.

Mrs. Srirat Rastapana, DEP Director-General, stated that, “The global concerns about climate change have driven designers around the world to originate a new concept of furniture design in order to help raise public awareness on global warming. Such a concept has become a new trend in furniture design. To capitalize on this opportunity, the DEP has planned to arrange this year’s TIFF event under the concept of “Living A Green Life”, which is in compliance with the rising global trend.

“The event will be divided into two parts. During the first three days, March 10th-12th, the event is open exclusively for trade negotiations, while in the last two days, March 13th-14th, it is open for public retailing. Apart from being a spectacular, all-inclusive showcase of Thailand’s very best furniture production capacity and design, TIFF 2010 promises to be a great platform for leading Thai furniture manufacturers, entrepreneurs, designers and operators of related businesses including spare parts, machinery and interior decor materials, to meet with potential buyers and counterparts from overseas. It’s a great chance for virtually everybody in the furniture industry to seek alliance and reach common success.” added Mrs. Srirat.

Mrs. Srirat further noted that, “TIFF 2010 is anticipated to be the most comprehensive furniture exposition ever staged in Thailand. This expectation is to encompass the various aspects of the event including the number of participating exhibitors; revolutionary furniture designs; and, the trade and business opportunities it will present to international visitors and exhibitors themselves. In addition, TIFF 2010 will pave the way for professional Thai designers to demonstrate their capabilities to the world, through collections of unique furniture designs or furniture items made from innovative, eco-friendly materials. The event is expected to welcome more than 33,000 international visitors from Japan, USA, EU, India, Middle East, Africa, Canada, Australia, Malaysia and Singapore.

“Thai Watsadu” is ready to run the first store in Bang Bua Thong

2010-01-24T06:56:00.001-08:00

“Thai Watsadu” is ready to run the first store in Bang Bua Thong, to please contractors and receive many special offers on the grand opening.

“Thai Watsadu”, “One-Stop-Shopping Construction Material Suppliers for Thai”, is now ready to open for sales on 30 January 2010 on Kanchanapisek Road, Bang Bua Thong on a 30 rai – land plot or 24,000 square meters which cover the west of Bangkok connecting to Nonthaburi and part of Supanburi, Nakhonprathom and Prathumthani. The store offers more than 100,000 SKUs of construction material with guarantee price lower than other small retailers.

President for CRC Power Retail Co., Ltd. and Power Buy Co., Ltd. Suthisarn Chirathivat stated “We invested more than 800 million baht for the first Thai Watsadu store, targeting the construction subcontractor and tailor – made house owners markets including government sectors. Moreover, different from others, we add up our strength in excellent services, quality products and damage warranty.”

“Thai Watsadu” store layout is formatted to suit for customers: a one-story building with a high ceiling equipped with security & fire prevention system, the first store is built on energy saving basis, with indoor parking space for 300 cars. The strengthen of this format is “daily low price”, “variety of products”, “full inventory enough for customer’s demand”, “convenience and swift” and “instantly receive”.

Regarding merchandise management, more than 100,000 SKUs of leading brands are covering major categories of construction products, for example, frameworks like roof, column, beam, base work; architectural decoration like roofing materials, heat prevention, stairs, doors, windows; electricity system like wire, plugs, brakers, switchboard; plumping like water & waste pipe, water tap, valve, plumper; lighting like desk lamp, bed lamp, landscape lighting; kitchen like cabinet, smoke ventilation, stove, dish washers and interior materials like shades, bath, furniture, living room and general electronic appliances.

“PowerBuy”, Thailand’s leading electronic appliance retailer will operate all products at “Thai Watsadu”, bringing more than 3,000 SKUs to their first store in Bang Bua Thong, total 1,000 square meters. At Bang Bua Thong, “Thai Watsdu” highlights “Audio & Visual”, “Home & Small Appliances”, and “Office Automation”. The store layout is designed under theme “warehouse” which, product stocks will be placed on the top of the shelves. Some product categories like AV are grouped by brand in order to give convenience for the customers. Special services are formatted to serve customers, for example, paints mixture, tiles calculation, furniture assembly.
Marketing concept of “Thai Watsadu” is
Completeness: Product complement total 100,000 SKUs
Lower price : Daily low price. No need to wait for promotional seasons

Good: Quality products with guarantee and customers are able to return and change
At “Thai Watsadu” You can get everything

Suthisarn Chirathivat added “ To celebrate the grand opening of the first Thai Watsadu store, we organize special promotions to please the customers in Bang Bua Thong and nearby vicinity, for example, discounted item, 1 baht item, daily lower price and a chance to win prizes worth more than 300,000 baht like gold necklace, motor bike, electric appliance. On 30-31 January are scheduled to be “The Constructor Days” for the first 200 contractors who visit Thai Watsadu and apply “Thai Card”, receive a right to get a 500 baht coupon to discount when purchase 5,000 baht. Moreover, with cooperation with Krugthai Bank upon information provision under project “Loan for Strong Thailand”, aiming to create better understanding among contractors, housing owners and create more confident to acquire a construction bidding or purchasing bidding.

Also, the company has released a member card “Thai Card” which provides customers a lot of benefits, accumulative points, exclusive price, cash or gift redemption, including credit card payment and installment program.”

The grand opening is scheduled 30 January 2010, 10 am, which Nonthaburi Governor Vichien Phuthiwinyoo will preside over, together with top executives of Central Group and suppliers.

The first time in Thailand, JARKEN launches the 4D “MINE” Series- the phenomenal super luxury in property industry - with expected revenue of 300 MB.

2010-01-24T05:45:00.001-08:00

JARKEN Group of Companies is taking a firmer and more solid step into the year 2010 by launching “MINE” Series in 4D form of perfection, targeting only at the elite and aiming at 300 MB revenue.

Kuldej Sinthawanarong PhD., Managing Director of JARKEN Group of Companies, the avant-garde architectural organization well trusted both locally and internationally, has disclosed that “After 9 years of fulfilling the needs of our clients in Thailand as well as international, JARKEN is now well versed for our unique style of minimalism blended perfectly well with modern elegancy. With client’s satisfaction in mind, JARKEN has achieved full trust from clients to design very high end residences, be it condominium or houses with space of 200-10,000 sqm. and budget of 15-20 or over 100 MB. Our clients are Thai and foreign developers as well as individuals”

“In 2010- we adopted a more aggressive marketing strategy especially in developing and creating new designs in order to answer to the need of broader scale of clients. We changed our logo from a green cross on white background to the solid black letters of JARKEN in combination with the 4 vertical lines of different sizes. It symbolized our professionalism in external and internal architectural designs,

Last but not least is our masterpiece of architectural design “MINE” Series by JARKEN. This new residential designs reflect well each individual characteristics, the inter-relation of spaces which allow each dweller to absorb in the ambience of every corner of his/her own “home”. The house is “MINE”. Pride one has in his/her house likens pride in the achievement along the passage of past unto present when he/she is at “home”.

There are 3 designs with 3 styles in “MINE” Series, ie, Quintessence, Extravaganza and Temptation with spaces of 2,000 sqm. up and budgets of 50-100 MB. The presentation of this “MINE” Series is in the perfect form of 4D.

In addition, the Company has created very unique Magazine Ads. We’ve got great honor from clients who worked mutually with us to create 5 masterpieces under the concept “Modeling JARKEN’s Role Models” which reflected the achievement, from extensive effort, in each and every aspect of designs for construction and services delivered to clients in the JARKEN’s way. Once the campaign is launched, it will be “talk of the town” especially and extensively in the property industry” anticipated Kuldej Sinthawanarong PhD.

JARKEN focuses only on high end and super luxury targets. And that covers 5-10% of the total market. The possibility is high since we have earned recognized international awards. And that put JARKEN on the path of never-ending development in order to create, to design and to deliver services that differ. We are confident that this will be another good year for JARKEN and we will achieve 300 MB revenue with our “MINE” Series.

‘Cotto’ sanitary ware and faucets celebrates its ‘25th Anniversary’ with a vision to become ‘the industry leader in ASEAN’ in 5 years

2010-01-17T04:17:00.000-08:00

‘Cotto’ sanitary ware and faucets marks its ‘25th Anniversary’ celebration with an aspiring vision to become an all-inclusive leader in the industry in Southeast Asia within the year 2014. The company plans to achieve this ultimate goal through its 4 unique ‘Brand Attributes’.

Mr. Saravut Sumransub, Managing Director, Siam Sanitary Ware Industry Co., Ltd., stated that, “The overwhelming success of Cotto over the past 25 years will undoubtedly be a solid foundation for the brand to springboard to even greater success in the future. To us, one of our greatest achievements so far is the fact that Cotto manages to win hearts of consumers of many different lifestyles and target groups.”

“Our next challenging, yet practical, goal is to become the all-inclusive leader in sanitary ware products and services in ASEAN within the year 2014, or about 5 years from now. Currently, our consolidated sales in ASEAN comprising Brunei, Singapore, Cambodia, Burma, Vietnam, Laos, the Philippines and Malaysia accounts for 40% of our total export volume.”, added Mr. Saravut.

“Looking ahead into 2010, Cotto plans to continue to open its innovative Cotto Studio, a one-stop sanitary ware products and service center offering 4 convenient solutions to customers – Bathroom Solution, Surface Covering, Water Solution and Kitchen Solution. Recently, we completed the renovation to turn the Don Mueang showroom at our headquarters to become the 11th Cotto Studio. This will make it easier for customers to have access to our various products and services.”

For 2010, the company aims to generate approximately 4.8 Billion Baht revenue for its sanitary ware products and faucets, a 15% increase from the previous year. Cotto is also determined to retain its market leadership with over 60% market share for sanitary ware and 40% for faucets. At present, 70% of its sales are domestic while another 30% is from export.

Mr. Saravut further noted that, “In order to become the ASEAN leader as we aspire to, as well as, to achieve the sales targets we are aiming at, we are making efforts to offer ‘The Right Solution’ for customers of many different lifestyles and needs. Our products come in many different designs for them to choose from, and our professional services are comprehensive covering product designs to installations.”

“At Cotto, we operate with the ‘4 Attributes’ philosophy which comprises the following. ‘Co-Create’ which means cooperation and teamwork to achieve utmost customer satisfaction. ‘Innovative’, the ability to always come up with new ideas and technology to make it easier for customers to benefit fully from our products. ‘Hassle-Free’, the ability to design our products to be user-friendly and easy-to-use. And lastly, ‘Integrity’, which reflects our genuine commitment to fair business ethics and good governance.”, concluded Mr. Saravut.

Speculative-Grade Bond Market Conditions Have Improved, But Risks Remain, Article Says

2009-11-19T06:37:00.000-08:00

The speculative-grade corporate bond market has made a sharp turnaround from earlier in the year, said an article published today by Standard & Poor's, titled "U.S. Speculative-Grade Spreads Sector Index Review: Prices Might Be Ahead Of Fundamentals (Premium)."

"The spread on Standard & Poor's speculative-grade bond index has tightened 947 basis points this year to 700 basis points as of Nov. 12, and high-yield bond returns have eclipsed 50%," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.

Credit quality has begun to stabilize, albeit at a very weak level. Downgrades have slowed considerably, falling to 106 in the third quarter of 2009 from 241 in the first quarter and 210 in the second quarter.

"Credit metrics, such as debt to EBITDA and interest coverage, are likely at or near the cyclical bottom. However, rapid improvement would take a surge in top-line growth, which we believe is unlikely to happen this year," said Ms. Vazza. "We expect fundamentals to remain weak for speculative-grade-rated companies in 2010."

Sectors with high leverage and low interest coverage levels such as forest products and building materials, automotive, capital goods, and media and entertainment have the highest risk premiums.

Spreads have tightened across all sectors, with some sectors, such as automotive, experiencing significant tightening, more so a result of the removal of defaulted issues from the pool rather than an increase in bond prices in the sector.

This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.

Steel product makers fear Afta influx

2009-11-08T04:45:00.000-08:00

       Steel and stainless steel product manufacturers have called for measures to protect local businesses, at risk from the elimination of import tariffs under the Asean Free Trade Agreement (Afta)in January.
       Once the import tariff is removed,cheaper steel and stainless steel products, mostly from China, are expected to flood into the local market.
       Ekachai Youngvanich, vice-chairman of the executive committee of Satien Stainless Steel Plc and a member of the Federation of Thai Industries' steel club,said several steel and stainless steel companies had discussed the potential impact and how to tackle the problem.
       "The government should help us and protect the local industry. We're worried that independent importers will bring in low-quality kitchenware products to Thailand. The market will get more intense and consumers will not be safe using these products," he said.
       Satien Steel Kitchenware, the maker of Zebra kitchen products, aims to avoid tough competition by shifting to focus on premium products.
       But governments in many Southeast Asian countries have already implemented measures to protect their manufacturers, which makes it harder for Thai companies to export to these markets.
       For example, Malaysia has already set up the Malaysian Industrial Standards Institute to test imported Thai stainless-steel tubes.
       "We think our company will get a positive effect when exporting products to Asean. The non-trade barrier will make our price go down, so we can sell 5% to 10% more products," said Mr Ekachai.
       Purchasing power for stainless kitchenware products has improved both locally and overseas at the moment, he said. The company has had more export orders from the United States, Europe and Australia.
       The company will therefore open its new 200-million-baht production facility at its Rayong factory by the middle of next year. This will raise production capacity by 10-15% from the current 6,000 tonnes per year, and should enable the company to meet demand over the next five years.
       About 70% of production will serve the domestic market and the rest exports.
       Sales of Satien Stainless Steel last year were at 1.2 billion baht. They are expected to increase by 5-7% this year,less than last year's double-digit growth due to the downturn and the H1N1 flu outbreak. Demand for stainless-steel kitchenware from hotels and restaurants has also fallen in line with the slump in tourism.
       Mr Ekachai said demand for Satien's kitchenware will increase by 7-10% next year because of the rebound. The company aims to achieve annual sales of 1.5 billion baht within the next five years.

SCG PAPER TURNS TO ALTERNATIVE PULP MATERIALS

2009-11-04T06:00:00.001-08:00

       SCG Paper is resorting to other materials for paper pulp-making, to ease the expected increase in global waste paper prices due to higher demand from China.
       President Chaovalit Ekabut said that the other materials for pulp-making, would offer the same quality as waste paper. Importantly, the production cost should be lower than when using waste paper to be imported from the United States.
       The paper unit of the Siam Cement Group expects the global demand for waste paper next year to increase due to the business resumption of paper manufacturers in China.
       Chaovalit said several Chinese paper manufacturers have resumed their operations after suspensions during the economic crisis. Those companies will have to order waste paper from the US, which is the largest supplier.
       The move of Chinese paper-makers might affect other paper manufacturers including SCG Paper because the company is one of those that purchases scrap paper from the US to be made into new paper products.
       Chinese paper manufacturers are expected to order a lot of scrap paper. They are expected to produce 2 million tonnes next year.
       Chavalit said the company has to reduce risk from the expected shortage of scrap paper by considering using another material that is not made from scrap paper, such as weeds.
       Other material prices should be lower than scrap paper, he said.
       He said that the resumption of Chinese paper manufacturing has driven scrap paper prices up from the current level of between US$160 (Bt5,350) and $170 per tonne.
       However, the scrap paper price is not expected to increase to $250 like in 2008, because of the low paper consumption of the US. The low consumption in the US is in line with the country's economic crisis. The consumption of paper this year dropped by 30 per cent.
       In addition, the company believes the economic situation has bottomed out because sales revenue and net profit in the third quarter improved from the second quarter, he said.
       SCG paper earned sales revenue of Bt11.23 billion, up 6 per cent from the second quarter while net |profit increased by 10 per cent to Bt701 million from the last quarter and increased 13 per cent year on year.
       Chavalit noted that the pick up of sales revenue in the third quarter might help the total sales revenue this year meet flat growth or drop a little from last year's Bt47 billion. The company earlier predicted a plunge in sales in 2009 due to the crisis.
       He said that the company outlook next year should be brighter because it will realise full revenue from a new paper craft plant in Vietnam. The company expected the plant in Vietnam would contribute Bt2.5 billion in sales revenue next year.
       Chavalit added that besides the new plant in Vietnam, the company is ready for new investment. One of SCG Paper's investments is the merger and acquisition of paper plants in Thailand and overseas.
       He could not reveal the investment budget for M&A, but said the M&As should be seen soon.

MAKERS OF BUILDING MATERIALS "BIGGEST GAINERS"

2009-10-28T20:23:00.000-07:00

       The building material, steel, downstream petrochemicals, auto parts and discountstore sectors will benfit from the government's second economic stimulus package, according to a research paper by SCB Securities.
       Firms making building materials are expected to reap the biggest gains from the Thai Khemkhaeng (Invest for Strength) scheme phase I, worth Bt200 billion.
       About Bt59 billion of the Bt200billion package will be used to develop small reservoirs and repair irrigation systems, and PVC manufacturers such as Thai Plastic and Chemicals and Vinythai will enjoy the benefits.
       The brokerage said another Bt35 billion would be allocated for building and repairing roads, boosting asphalt demand and benefiting Tipco Asphalt.
       Tata Steel (Thailand) and G Steel will also be beneficiaries from the stimulus package, as steel bar and wire will be major raw materials in construction works related to irrigation systems, hospitals and electric trains, SCB Securities said.
       However, the brokerage is nor sure whether Sahaviriya Steel will also gain, as PVCpipe prices and maintenance costs are lower than those for steel pipelines.
       Cement-makers Siam Cement, Siam City Cement and TPI Polene are other expected gainers in the buildingmaterials sector.
       The brokerage estimates that the 10-12 electricrail routes will need 9 million10 million tonnes of cement.
       "It is too early to calculate cement demand for all the routes, but the Purple, Red and Blue lines alone will create 2.53 million tonnes of cement consumption over their fouryear construction periods," the paper said.
       For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
       From the previous village funds' budget in fiscal years 20042005, Big C and Makro reported sales growth in existing branches at 3 per cent and 6 per cent, respectively. This is well above Big C's current performance of minus 2.5 per cent to positive growth of 3 per cent, and Makro's growth of 13 per cent.
       Makro tends to receive greater benefits from such schemes than Big C as its products are more related to economic activities.
       This said, SCB Securities recommends "buy" on Big C with a 12month target price of Bt55 based on the dividend discount model, and "sell" on Makro with a 12month target of Bt67.
       However, as both firms will benefit from the government's economic stimulus measures, the brokerage will soon review its assumptions.
       Given that the package will bolster economic activities in rural areas, the demand for pickups and tractors will increase, making Somboon Advanced Technology a winner.
       The company is Thailand's largest axle-shaft manufacturer for pickups with a market share of 80 per cent. Moreover, it supplies shafts to Siam Kubota, the country's largest tractor producer.
       The brokerage recommends "buy" for the stock, with a 12month target price of Bt13.
       The government's plan to lower the ratio of students to computers from 38:1 to 20:1 will create demand for 200,000 PCs. IT City, the computer peripherals and equipment distributor, will therefore stand to gain.

       For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.

Thainox share sale rumoured to Posco

2009-10-28T20:21:00.000-07:00

       Thainox Stainless Plc, Southeast Asia's largest stainless steel producer, said yesterday that its top shareholder was in sale talks, stoking speculation of a possible $370-million sale to the world's sixth-largest steelmaker.
       Thainox did not identify a possible buyer, but a source at the South Korean steelmaker Posco told Reuters on Wednesday that talks to buy a further stake in Thainox were in the final stages.
       The Mahagitsiri Group, which owns 51.7% of Thainox and represents one of Thailand's richest families, was in talks for a possible sale of shares to an undisclosed party but was undecided, a stock exchange statement said.
       Prayudh Mahagitsiri, the company's chairman and chief executive, and a key power-broker in the government led by deposed former prime minister Thaksin Shinawatra, declined to comment on the reports.
       The news sent Thainox shares (INOX)up 11.5% to a four-year high of 1.65 baht in the morning session on the Stock Exchange of Thailand. The shares closed yesterday at 1.50 baht, up two satang, in trade worth 86.4 million baht. The stock has risen nearly 69% this year on speculation about a possible sale.
       "We were informed that they are in the process of negotiation on the terms and conditions of the share sale transaction, and until now they have reached no conclusion," it said in the statement to the SET.
       Posco had no official comment yesterday regarding the possible acquisition of Thainox Stainless Plc.
       But an industry source close to the matter said:"If share prices are rising [as in the current situation], it will be hard for Posco to acquire Thainox."
       Posco currently owns 15% of Thainox.Analysts say the South Korean steelmaker is seeking to acquire the Thai company to expand its cold-rolled coil capacity and overseas presence.
       But any acquisition that raises Posco's stake to 25% or more would require it to offer to buy the remaining shares, according to Thai market regulations.
       Earlier this week, Korean media quoted unidentified industry sources as saying Posco would buy 85% of Thainox for between 400-500 billion won ($342 million to $427.5 million). But the company source said that the rumoured acquisition prices were not correct.

SIAM MORTAR TO SPEND UP TO BT700M ON CAPACITY BOOST

2009-10-28T20:20:00.000-07:00

       Siam Mortar, a construction-materials unit of Siam Cement Group, is planning to invest Bt600 million to Bt700 million to boost its annual production capacity of ready-to-use mortar by 500,000 tonnes by 2011.
       The expansion is expected to serve its future growth of 20-25 per cent per year, despite shrinking demand in the overall cement market.
       Managing director Rewat Suriyapananont said Siam Mortar currently operated at 80 per cent of production capacity of 1.3 million tonnes per year. It has three production plants, of which two are
       located in Saraburi and the other in Nakhon Si Thammarat.
       "We need to expand our production capacity and conduct aggressive marketing strategies if we plan to double our sales in five years," he said.
       The new plant could be located in the central region, where demand is high, he added.
       Although overall cement consumption is expected to fall by 5 per cent this year, Rewat is confident his firm's mortar sales will maintain growth of 10-15 per cent to 1 million tonnes thanks to high-quality products and innovative solutions for customers.
       "Even though our sales growth is increasing, the growth in 2009 will still be lower than the [average] 20-25 per cent over the past five to six years, as a result of the economic slowdown. However, we believe that our sales growth will rise to 20 per cent next year, since property developers have returned to proceeding with their incomplete projects in big cities like Phuket," he said.
       About 80 per cent of Siam Mortar's sales are from big property projects, with the remainder generated by private houses and the house-renovation market.
       "Since the economic crisis erupted, we realised we should focus more on the private housing market. Despite a small volume of cement demand, it has more sustainable growth than large property projects," he said.
       Hence, the company plans to change the sales proportion to generate 40 per cent of sales from property projects and 60 per cent from private housing and the renovation market.
       He said the future trend of the cement market would be to develop eco-friendly products that would be good for both the environment and inhabitants' health.
       "SCG Cement has allocated a budget of Bt200 million for research and development each year, because we will change ourselves from a cement-maker to a solution provider. For example, we will not only sell cement but also wall and floor systems in the future, in order to better utilise customers' budget and time," he added.
       Presently, the total market for mortar cement is worth about Bt2 billion, with a volume of 2 million tonnes per year. It is predicted to expand by 10 per cent this year.
       Siam Mortar has a 50-per-cent share of the market, followed by TPI Polene with 40 per cent and Siam City Cement with 10 per cent.

Aussie firm shifts to Phuket

2009-10-20T21:21:00.000-07:00

       Australia-based swimming pool producer Autumn Solar Pty Ltd will shift its manufacturing base to Phuket to benefit from the Asean Free Trade Area.
       The relocation involves a joint-venture with a local pool producer and investment of 50 million baht.
       Managing director Steve Merrett said the move from Ulladulla, a coastal town in New South Wales, Australia, to Phuket would help reduce manufacturing costs by 15% to 20% due to lower wages,cheaper raw materials and savings in transportation costs.
       The relocation would start this month by moving salt chlorination system production. Full production would be completed within two years when it will close its factory in Australia, he said.
       The firm also plans to close a plastics factory in China which will shift to the new centre in Phuket, he said.
       "It's an opportunity to have Thailand as our manufacturing base," he said."We can import materials from Australia with zero tax and export the products to China, our main market, and the rest of the world without tax as well."
       The firm currently exports 90% of the equipment made at the Ulladulla plant to China, Thailand, Vietnam, Europe and the US. Autumn Solar had a turnover of US$55 million last year, he said.
       The company yesterday announced a joint venture with JD Pools 2004(Thailand) which will establish a firm with registered capital of 50 million baht.
       Thanusak Phungdet, chief executive of JD Pools, said the firm's factory in Phuket would double to 10,000 square metres with Autumn Solar's relocation.
       The company plans to increase its exports from 20% of production to 50%in three years. It targets annual sales of 1 billion baht with the joint venture.
       The Thai pool market this year is estimated at about 2 billion baht, up 10%to 15% on last year. JD Pools expects sales of 600 million baht this year, up 12% on 2008 but below its 15% target.

Starmark eyes 10% growth

2009-10-14T21:58:00.000-07:00

       Starmark Co, a manufacturer of kitchen fittings, is maintaining its 10% sales growth target this year on the back of improving sentiment among both project developers and retail clients, said managing director Nantana Srisakulpinyo.
       Fourth-quarter sales in the local furniture market are set to improve with a better economic outlook coupled with the approaching high season for furniture purchases, said Ms Nantana.
       "Project clients have regained their confidence in investment and next year we expect the number of residential projects we're going to deal with will increase by 15% from this year," she said.
       Project clients account for about 60%of sales and retail buyers 40%. But Starmark plans to boost the contribution of retail clients to 45% of sales next year as the segment has ample room to grow and also provides a better sales margin.
       Spending per individual on Starmark kitchen fittings is estimated at about 150,000 to 200,000 baht.
       Currently, Starmark has 45 retail outlets nationwide. It plans to add three next year, including one at Crystal Design Center.
       The kitchen furniture market in Thailand has been growing at about 10% to 15% each year for the past three to five years as many international brands have continued to enter the market, said Ms Nantana.
       Local furniture manufacturers are also investing more in the kitchen furniture segment as consumers are paying increasing attention to kitchen design and decoration, she added.
       The company yesterday launched the "New Hygienic Thai Kitchen 2010" kitchen fittings series to tap demand for Thai-style cooking.

China opposes US anti-dumping probe of steel pipes

2009-10-11T23:18:00.001-07:00

       Beijing is rejecting a move by Washington to launch an investigation into whether Chinese mills are dumping steel pipes on the US market or benefiting unfairly from government subsidies.
       The probe comes as the United States and China accuse each other of protectionism, which both say will hurt efforts to end the global economic crisis.
       "Blind accusations of dumping or sub-sidies in Chinese imports is lacking in factual basis, which China strongly opposes," China's Commerce Ministry said in a statement on its website on Saturday.
       The statement said the problems in the American steel industry were brought on by weakened demand and should not be blamed on Chinese imports.
       The US Department of Commerce last week started investigating at the request of US steel manufacturers, who say Chinese manufacturers have sold steel pipe at prices below the cost of production - a practice known as dumping - and have benefited from massive government subsidies.
       US manufacturers want tariffs placed on the Chinese imports to offset the alleged subsidies.
       President Barack Obama recently ap-proved higher tariffs on US imports of Chinese-made tires to slow the rapid growth of imports that a labour union has blamed for the loss of thousands of American jobs. Beijing filed a World Trade Organisation challenge to Washington's decision. The two also are involved in disputes over access to each other's markets for poultry, paper, music and movies.

Thainox share sale rumoured to Posco

2009-10-09T22:16:00.000-07:00

POSCO "MULLS SNAPPING UP REMAINDER OF THAINOX"

2009-10-07T21:19:00.001-07:00

       Pasco, Soth Korea's biggest steelmaker, is considering buying up to 85 per cent of Thailand's Thainox Stainless in a deal that could be worth as much as US$428 million (Bt14.3 billion), according to a Bloomberg report.
       prayuth Mahakijsiri, a major shreholder of Thainox, declined to comment when contacted by The Nation yesterday.
       However, Choi Doo Jin, a Posco spokesman, said details such as price and the size of the stake in the Thai company had not yet been decided.
       Posco, which already owns 15 per cent of Thainox, may invest up to as much as 500 billion won in the firm for the remainder of the shares, the Korea Economic Daily reported on its website.
       The South Korean company is expected to sign a preliminary agreement this month as it is negotiating the price with thai shareholders, the report said.
       Prayuth, who also has sizeable interests in the coffee industry and other businesses, branched into the stainless-steel industry more than a decade ago.
       In the second quarter, Thainox posted a consolidated net profit of Bt221.03 million, down from Bt311.75 million in the same period last year.
       It posted a net loss of Bt240.06 million for the first six months of the year against a net profit of Bt682.94 million for the same period last year.
       As of last April, Prayuth and his family controlled more than 54 per cent of Thainox, which booked a consolidated net loss of Bt1.16 billion in 2008, against a consolidated net profit of Bt134.08 million in 2007.
       Late last year, employees of Thainox staged a protest over changes to their pay and welfare as they were asked to sign new contracts which substantially cut welfare and bonus payments.
       Steel companies have been hit by a sharp decline in prices, along with those of other metals.

SCG mortar unit commits B700m to expansion

2009-10-06T19:57:00.000-07:00

       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.

GOING GREEN IS THE NEW MANTRA FOR DESIGNERS

2009-10-06T19:56:00.000-07:00

       In a bid to curb global warming, design trends in residnetial and office buildings are in creasingly espousing the green concept.
       Property developers as well as construction materials manufacturers are laying greater emphasis on green enviroment.
       A survey by The Nation on design trends showed that residential and commercial building owners are most concerned about environmental safety. As a result, architects and interior designers are creating buildings that ensure energy savings, wiht the construction desigh matching interior design to reduce energy consumption.
       Supalai's palai's president, Prateep Tangmatitham, said the company takes concerns about the environment into account when designing both low-rise and high-rise residences. While designing, the direction of the building is given special emphasis,taking into account wind a d light.
       The company also selects the consturction raw materials that help to reduce energy consumption such as green glass, double wall and roftile syste,.
       LPN Development managing director Opas Sripayak said that most of the company's residential projects are now designed environ mentally friendly and int eh process it helps its customers save money on electricity.
       "Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents tha use the normal system"he said
       SCG Building Materials, a subsidiary of SCG Group, teamed up with Japanese company Sekisui Chemical to launch an innovative Modular home Technology.
       SCG Building Materials president Pichit Maipoom said the company's continuous study of cliential projects are now designed environmentally friendly and int eh process it helps its customers save money on electricity.
       "Our buildings will cut the electirc bills of our customers on an average by 10 to 20 per cent when compared with the residents that use the normal system," he said.
       SCG Building Materials, a subsidiary of SCG Grooup, teamed up with Japanese company Sekisui chemical to launch an innovative Modular Home Technology.
       SCG Building Materials president Pichit Maipoom said the company's continuous study of cliental behaviour and house-related needs found that customers wanted quality both in construction materials and construction as well as good quality of life. "A good house should be convenient, clean, safe, and worthy of the life cycle cost."

       In responding to these needs,pichit said the company would provide a comprehensive house service system through its collaboration with Sekisui Chemical, the leading Japanese company specialising in the housing business for more than 30 years and the laargest manufecturer of modular Home.
       Sekisui will introduce a distinctive and advanced Modular Home
technology for the first time in Thailand.
       "Combined with SCG's good qualtity building materials, it will produce a good quality house that genuiely meets and understands cistp,ers
de,amds" he said.
       The innovative Modular Home Technology will be called "SCGHEIM".
       Unlike other house-building technologies, the Modular Home offers an innovative creation in which more than 80 per cent of house components are produced in the factory and assembled into modules ready to be installed on site in a couple of days.
       Besides, the house is designed for energy-efficiency with life cycle cost for a period of 30 years.
       Following the energy-saving concept, SCG-HEIM houses install insulation around the house and air tightness to fill in spaces between joints of the house to keep the room temperature between 25 and 29 degrees Celsius. Air Factory is installed to ensure indoor air purification and consistent flow of air,which in turn will help save power from the use of air-conditioners.
       Most home-owners these days have the energy-saving concept in mind when spending on renovation.
       Home-owner Wichart, 40, has saved 10.38 per cent on energy consumption, or 863 units of electricity per year, after the building was renovated for energy efficiency.
       The refurbishment not only saves money (about Bt3,020 per year based on a cost of Bt3.50 per unit), nut also creates better living conditions and a healthier environment by reducing greenhouse-gas emissions.
       One principle that must be accepted in such conversions, how wever, is that upfront investm4nt is often steep but offers generous returns over time. The core ideas are stopping the incursion of hot air into living spaces, changing habits and using energy-saving electrical appliances.
       Installing aluminium foil and fibreglass insulatijon is the most efficient way to cut electricity bills,because this can prevent a build-up of heat. Where the insulation should be installed depends on the home owner's budget.
       Those on a very tight budget should perhaps limit the installation of fibreglass insulation to the attic,because that is directly heated by the sun. Those who can afford it, should install insulation not only in the attic,nut also in ceilings and walls, particularly in rooms with air-conditioning, because it can prevent heat flow and reduce cooling costs.
       Importantly,insulation at least3 inches thick is recommended for hot countries like Thailand. Layers of lesser thickness are ot as energy efficient.
       The latest innovation in construction raw materials helps home owners to save costs although they have to pay a higher price for energy-saving raw materials. But in the long term, they can cut their cost of living than by using normal products. As a result, companies have to develop innovative products to sefrve the change in customer demand, Pichit said.

SIAM MORTAR TO SPEND UP TO BT700M ON CAPACITY BOOST

2009-10-06T19:54:00.000-07:00

INNOVATION AND ADDED VALUE PAY OFF FOR SCG FIRM

2009-10-02T19:36:00.000-07:00

       SCG Building Materials, a subsidiary of the Siam Cement Group, has a simple marketing strategy: "Create better functions for all." The company's drive for innovative products and added value has won it acclaim within the giant conglomerate.
       SCG Building Materials offers a range of products, including tiles, faucets, Cotto-brand sanitary-ware, CPAC Monier-brand roofing materials, CPAC Design-brand paving blocks and Siam Fiber Glass-brand insulation products.
       President Pichit Maiphum said SCG Building Materials was forced to focus on innovative products and adding value to others because that generated higher returns on investment than producing and distributing cheaper products in a market with fierce competition and low profit margins.
       "There is high competition for our products, so we have to have a marketing strategy of producing creative building solutions. This has more value than simply selling [conventional] products," he said.
       The strategy, pursued over the past four to five years, has led to SCG Building Materials winning three out of four awards in the Siam Cement Group's first "in-house" Marketing Best Awards 2009.
       The awards recognise superior marketing strategies, in which companies have built their brands and created new distribution channels, among SCG's subsidiaries. Eighteen marketing teams competed for the awards this year, the first time the competition has been held. There were only four awards: the SCG Marketing Best Award, a first runner up, a second runner up and Creative Best.
       SCG Building Materials' three awards included first runner up for Cotto Speed Bathroom, second runner up for the Disney Collection by Cotto Tile, and Creative Best for Spark the Smart Installer, by CPAC Excella roof tiles.
       Siam Sanitary Ware Industry marketing specialist Parapapar Atcharanukul, who led the Cotto Speed Bathroom team, said the company had succeeded in creating a marketing solution for tiles and sanitary-ware by offering a system in which it could design, renovate and build a customer's bathroom in seven to 15 days.
       The company is currently developing the building concept to make it even faster in the future. This adds value to the products, rather than simply selling ceramic tiles and sanitary-ware, she said.
       Cotto (Disney) Thai Ceramic marketing manager Pranee Chansuroj said the company created co-branded products in deals with globally-recognised brands such as Disney. This differentiated the products from normal ceramic tiles.
       The company plans to join other global partners to produce more co-branded ceramic tiles this year, building added value for its products.
       The presales manager for Excella roof tiles, Siriwan Lila, said Thai Ceramic Roof Tile had created a new distribution channel through local residents to the Thai temple market.
       The company recognised a business opportunity in offering quality roof tiles for use on temples.
       Previously, community funds used to renovate temple roofs were spent on locally made roof tiles of low quality.
       Pichit said the three awards proved that his company's strategy was succeeding in building its brands. However, market pressures meant his company would have pursued the marketing strategy whether it received awards or not.

Rayong appeal discussed

2009-10-02T19:35:00.000-07:00

       The country's industrial giants gathered yesterday to discuss the court-ordered suspension of permits at Map Ta Phut and whether the private sector could petition the court to relax its orders.
       Led by the two largest operators at the Rayong industrial estate - PTT group and Siam Cement Group - the companies discussed possible appeals with the Federation of Thai Industries (FTI). The government is already planning an appeal.
       "The private sector, particularly big companies, have asked the government if the law will allow them to file petitions to request the court to delay its ruling's effective date," FTI chairman Santi Vilassakdanont said."In the dispute though it seems to be an argument between the government and activists - the sufferer is the business sector."
       The Administrative Court on Tuesday suspended operating permits for 76 projects, based on Section 67 of the 2007 Constitution, which addresses the impact of industries on community health and the environment.
       The FTI urged the government to seek a long-term solution that could allow investment and environmental conservation to coexist.
       PTT, its subsidiaries and joint ventures have invested more than 120 billion baht in 25 projects, of a total 76 suspended, said Prasert Bunsumpun, president and chief executive of PTT.
       The group will not be hurt as much as previously predicted if PTT's projects have to be delayed to comply with the court order, as most have yet to start construction, he said.
       However, PTT's sixth gas separation plant and the olefins cracker of PTT Chemical Plc are heavily affected.
       As a cracker is the upstream unit for petrochemicals, related industries would be short of domestic feedstocks and would require imported materials. SCG also has ongoing investments in a naphtha cracker and downstream plants un-der construction in the area.
       "The whole country will see the impact - from the construction sector,creditors, employment, stakeholders and the stock market - not only the industrial sector will suffer," Mr Prasert said."They have abided by the law since the beginning, so I don't think they will tolerate this."
       Tevin Vongvanich, chief financial officer of PTT Plc, echoed Mr Prasert.
       "The damage has happened already.Some projects designed to improve the environment are also affected," he said."If it becomes clear that they don't want us to expand [in Map Ta Phut]anymore, we might have to look at other locations to place our investments in the future."
       Surong Bualakula, a PTT senior executive vice-president for international business, said investor confidence had been shaken.
       "The message perceived by investors abroad has made them panic. They [perhaps] don't know where Map Ta Phut is but it is actually the image of the country that has been hurt," he said.
       Concerned parties should look at ways some projects can go ahead along with health impact assessments (HIA),he said."We should find the balance for environmentally responsible industries to live together with communities."
       According to the ministry,11 projects out of 76 received environmental impact assessment (EIA) approvals before the 2007 Constitution took effect, so these projects worth 58 billion baht need not be suspended.
       The remaining 65 projects include 47 expansions and 18 new investments,worth 229 billion baht in total.
       Patareeya Benjapolchai, president of the Stock Exchange of Thailand, said the exchange hoped SET-listed PTT and SCG could resolve the matter."I believe there will be a positive answer to it as the government sector is taking interest in solving the problem," she said.
       The issue is expected to have an impact on foreign direct investment rather than on the foreign investors in the Thai stock market due to their diversified investment portfolios, she said.
       PTT shares closed yesterday at 263 baht, up one baht, in trade worth 1.11 billion. SCC also rose one baht to 223.

China's industrial profits decline 10.6%

2009-09-27T21:44:00.001-07:00

       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.

Two provinces singled out for steel mill

2009-09-27T21:43:00.001-07:00

       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.

PRODUCERS DENY HOME PRICES BEING PUSHED UP

2009-09-27T21:41:00.000-07:00

       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 SEEKS THIRD GROUP OF POOR STUDENTS

2009-09-27T21:37:00.000-07:00

       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.

World steel production rises

2009-09-23T23:44:00.001-07:00

       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.

TATA STEEL EXPECTS GROWTH IN DOMESTIC DEMAND AND ACTIVITY

2009-09-23T23:42:00.000-07:00

       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.

SCG UPBEAT ON CONSUMPTION SURGE

2009-09-23T23:41:00.001-07:00

       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.

CONSTRUCTION MATERIALS PRICES TO BE CONTROLLED

2009-09-23T23:39:00.000-07:00

       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.

SCG sees cement demand pick up

2009-09-23T23:38:00.001-07:00

       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.

Government to monitor construction materials

2009-09-23T23:36:00.000-07:00

       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.

SCG focuses on overseas coal trading

2009-09-19T21:30:00.000-07:00

       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.

Building material demand up

2009-09-16T08:29:00.001-07:00

       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.

SCG sets up prefab venture with Sekisui

2009-09-13T20:19:00.000-07:00

       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.

SIAM CEMENT UNIT IN JVS FOR MODULAR HOME TECHNOLOGY

2009-09-12T17:28:00.000-07:00

       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.

US STEEL PUSHES OBAMA TO CHOOSE WORKERS OVER TRADE

2009-09-10T00:43:00.000-07:00

       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."

CONWOOD MULLS BT500M PLAN TO BOOST OUTPUT

2009-09-08T20:29:00.001-07:00

       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.

SPLASHING OUT AT HOME

2009-09-03T20:36:00.000-07:00

       "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.

VILLAGERS UP IN ARMS AGAINST HUGE PROJECT

2009-09-01T23:51:00.000-07:00

       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.

BOONTHAVORN HOLDS BACK PLAN FOR MORE OUTLETS

2009-08-31T20:03:00.000-07:00

       Company watching economic trend closely before proceeding with expansion plans
       Boonthavorn, like its retail customers, has grown cautious about spending billions of baht on building up its chain of speciality stores for construction materials and home improvement products, despite the upturn in the economy.
       "Although the economy overall shows signs of recovery, we need time to be sure in which direction to go," Sitthisak Tayanuwat, commercial vice president for Boonthavorn Ceramic, said yesterday.
       The company is considering whether to speed up or put on hold its expansion plan to cover all the big cities upcountry such as Chiang Mai, Phuket and Hua Hin. Its provincial sales account for only 20 per cent of its total sales. A brokerage source said Boonthavorn had planned to raise funds from the public, but there has been no movement for a while.
       Instead, Boonthavorn has opted to widen its market into a younger segment by refreshing its brand and renovating its six showrooms with a five-year budget of more than Bt1 billion. This is considered its biggest overhaul in 30 years of doing business.
       The six Boonthavorns are located in the Ratchada, Rangsit, Pinklao, Suvarnabhumi and Thon Buri-Pakthor areas of greater Bangkok and in the beach resort city of Pattaya.
       Construction on the new Kaset-Navamin branch in Bangkok with total retail space of 40,000 square metres is already 75 per cent complete. When it opens next quarter it will also display furniture and lighting.
       "Changes in people's lifestyles such as the way they think or make buying decisions led us to refresh our Boonthavorn brand and showrooms to expand our target group to youngsters, who just graduated or started working, aged down to 25 years," Sitthisak said.
       "Up to the present, our target group was concentrated on middle-age customers who are more than 35."
       Customer buying behaviour is proactive, as shoppers come to Boonthavorn for the purpose of buying something. But over the past six to 10 years, what the new generations want are convenience and value for their money, he said.
       Major products carried by Boonthavorn stores are wall and tile ceramics, kitchenware, sanitary ware, paints, lighting, tools and hardware.
       Boonthavorn offers strong brands and a wide variety with 80,000 items from its suppliers and 30,000 patterns of ceramics. But, its name does not register with youngsters, he said.
       Boonthavorn's customers come in four categories - retail, regular, deep pocket and project. The company's sales were most hit by project customers since fewer real estate developments were started.
       Retail represents 25 per cent of total sales. This group was affected only slightly by the economic crisis, but individual customers are more cautious than before.
       The regular group, consisting of professionals such as architects, contractors and designers, has experienced a drop in home-building work. The company tries to retain this group by launching a CRM programme for two years.
       Recently, Boonthavorn opened a Builder Contractor and Designer Club, which now has 100,000 members, at its Ratchada showroom for architects and home-building specialists to use as a library or centre for meeting with their clients.
       The deep-pocket customers, who normally spend a large sum per bill, have largely escaped the economic contraction.
       This year the company has spent Bt200 million-Bt300 million on improving its product variety.
       Boonthavorn's workforce numbers 2,000 and has never been reduced since the wake of the economic crisis of 1997.
       The company recently lowered its sales target for this year to Bt7.5 billion from Bt8 billion set earlier. It booked Bt7.3 billion in sales last year.

Lead poison scandal grows

2009-08-25T22:49:00.001-07:00

       The impact of a Chinese lead poisoning scandal spread to another two provinces yesterday, threatening further cuts in supply from the world's top producer of the metal.
       Hunan, the second-biggest producer of refined lead among China's provinces,and Guangxi, which ranks number five,are checking smelters after protests by parents at a lead and zinc smelter operated by Dongling Group inChangqing, Shaanxi province, and at a manganese smelter in Hunan earlier this month.
       "The result of the checks will come in another few days," a smelter official in Hunan said, adding that possible closures of lead smelters would depend on the findings.
       Lead poisoning is endemic among villages near Chinese smelters.
       In Shaanxi's Fengxian, where smoke billows from a Dongling Group zinc smelter, two wan and listless toddlers tested with high levels of lead in their blood earlier this year.
       "These problems are really common.It's just that the Dongling case in Changqing got some attention," said a villager.
       Older villagers develop circulatory problems and some workers got too sick to work.
       "This environmental pollution is not unique to Fengxian. It's all over."
       Lead poisoning due to air and water pollution from poorly regulated smelters and mines haunts the valleys of the orerich Qinling range, in a poor and remote part of China.
       The problem dogs heavy metals bases in Hunan, Henan, Yunnan and Guangdong provinces. Closing polluting plants has pushed the industry to poorer areas where any investment is welcome.
       The shift to poorer regions echoes the migration of the lead smelting industry to China over the last decade,as stricter environmental laws forced smelters in richer countries to close.
       In late 2005, two of China's largest zinc smelters shut temporarily after cadmium contaminated the Pearl River Delta and the Xiang River, sources of drinking water for millions in Hunan and Guangdong Provinces.
       More than 1,500 children have tested positive to excessive amounts of lead in the past two weeks.

Q-Con maintains sales goals

2009-08-24T21:45:00.000-07:00

       SET-listed Quality Construction Products Plc, a manufacturer and distributor of lightweight concrete under the Q-Con brand, has maintained its sales estimates for 2009 despite falling short of its target in the first half.
       Second-quarter sales missed its estimate by 25% on 195 million baht, making first-half figures fall 13.5% to 450 million,said Kitti Soonthornmanokul, vicepresident of the sales and marketing.
       The company earlier projected revenue of 520 million in the first six months,Mr Kitti acknowledged.
       "The second quarter saw a business slowdown, especially in the private sector,for high-rise building construction where some projects have been delayed. Also,purchasing power in the provinces has declined due to the falling prices of agricultural products," he said.
       "However, demand recovered for the low-rise building sector by the end of last quarter," noted Mr Kitti.
       Despite the weak performance in the first half, he said Q-Con is still hoping to maintain its sales goal of 260 million baht for each quarter in the latter half.
       "Looking at rising orders in July and this month, we are confident that the second half will be better than the second quarter," he said.
       The company is penetrating the provincial market and creating marketing campaigns to lift volume and product prices.
       "The government is launching infrastructure projects such as mass transit rail lines, highways and roads. We will see an increase in high-rise building construction along the rail lines," he added.
       Q-Con's revenue slid 8% to 198 million baht in the second quarter with net loss decreasing to 7 million baht from 18 million the same period last year.
       Mr Kitti said profit margin this year will be on par with last year due to lower oil prices and raw material costs.
       Q-CON shares closed yesterday on the SET at 1.60 baht, up 2 satang, in trade worth 538,000 baht.

Other industries support upstream push

2009-08-23T22:11:00.001-07:00

       Industry operators support establishing an upstream steel industry in Thailand as it would reduce risks from importing expensive steel products.
       Ninnart Chaithirapinyo,vicechairman of Toyota Motor Thailand, said an upstream steel producer would vastly reduce the production cost of locally made vehicles. Locally produced steel is 10-15% cheaper than imported products because of import tax, logistics cost and shipment insurance, he said.
       Local supply would also allow production flexibility as imported steel purchasing orders must be made three months in advance. Local supply would also eliminate exchange-rate and price fluctuations as speculative investment can affect global steel prices, said Mr Ninnart.
       Local production promotes development of other industries that need quality steel products such as shipbuilding, bus,rail and plane assemblers.
       The government should support steel industry development, especially local community understanding of the industry and environmental protection,he said.
       "Interested investors for projects need to know the government's direction,"said Mr Ninnart.
       Last year, the automotive industry contributed 900 billion baht or 10% of GDP. The industry employs 1.2 million workers and vehicles are the secondlargest export product, in terms of value.Electrical and electronics items are the country's top export.
       Payungsak Chartsutipol, president of the Steel Industry Club at the Federation of Thai Industries (FTI), agrees the country needs upstream steel production.
       "All industries would benefit. We use 13 million tonnes of steel products yearly to support various industries," he said.
       "While steel demand is expected to surge to 15 million in a few years, we should have local production to complete the supply chain, create local jobs and guard against steel speculation and exchange-rate fluctuation."
       According to Vikrom Vajragupta, director of the Iron and Steel Institute of Thailand (ISIT), four upstream steel investors - Japan's Nippon Steel and JFE Steel, India's Arcelor-Mittal and China's Baosteel - have all filed preliminary environmental and community management plans to the Board of Investment (BoI).
       An upstream steel industry development team under Industry Ministry supervision has selected three to four potential sites in the southern and eastern regions. The sites need massive environmental rehabilitation and investors are expected to contribute to this improvement.
       "The project would also have to be acceptable to the local community," said Mr Vikrom.
       The ISIT is now waiting for 38 million baht from the 2010 government budget to be disbursed so it can go ahead with in-depth research on the finalist sites.

Sahaviriya reluctant to invest more until green rules clarified

2009-08-23T22:09:00.000-07:00

       The Sahaviriya Group, the country's largest steel producer, will not invest in any big projects locally until uncertainties about environmental and health impact regulations are cleared up, says president Win Viriyaprapaikit.
       "There's too high a risk for us to invest a lot of money here; we also need to limit our damages. From now on we will invest only in small projects that complement the production lines we already have here, so there will be limited damage if anything happens," he said.
       "We would rather invest in massive capital projects overseas."
       Sahaviriya recently abandoned a fouryear attempt to develop an upstream steel project and smelter worth 500 billion baht. It had faced strong opposition by environmental activists and communities near the planned site in Prachuap Khiri Khan.
       However, the final decision to give up - after 3 billion baht in preparation costs - came after a court in April declared the heavily industrialised Map Ta Phut area of Rayong a pollutioncontrol zone. The ruling called into question a whole range of environmental regulations and put the brakes on hundreds of billions of baht in planned industrial investments.
       At issue is the interpretation of Section 67 of the 2007 Constitution, which seeks to protect the public from the harmful effects of some industries. The central government and local authorities are
       still debating what kinds of controls will be required and how they will be enforced.
       The Council of State recently ruled that authorities can use existing laws to grant operating permits Win: Big projects to factories in Map overseas a choice Ta Phut with previously approved environmental impact assessment (EIA)reports However, Mr Win said the Council of State's ruling was just a short-term solution, while in the long term, there is no guarantee that industrial investments won't face more legal challenges.
       "[Activists] threatened to bring the government to court right after the premier gave the go-head to authorities last week to proceed with issuing operating permits [to factories with approved EIAs].In fact, the law gives the authorities the power to do so," Mr Win said.
       "I don't think we can take risks doing anything big here in this [unclear] climate."
       Mr Win says that Section 67 needs to be rectified since the law now creates two authorised bodies to examine projects.
       "There is an independent committee responsible for inspecting EIA reports.Why does the law require one more committee to look after the same issue?If they want to ensure a project's environmental management policy, they should design a single committee that covers the whole thing," he said.
       "In my view, the new committee could have more power to abort any projects it wishes to even though the state authorities have already given their approval."
       Sahaviriya is the country's biggest hotrolled coil producer. Its subsidiary, Sahaviriya Steel Industries Plc (SSI), also produces cold-rolled coil and other steel products.
       SSI closed on Friday on the SET at 0.92 baht, up one satang.

Steel output hits 2009 peak in July

2009-08-20T23:18:00.001-07:00

       Global crude steel production dropped over 10% year-on-year in July,but rose to its highest level of 2009 as producers brought back idled capacity on improved demand.
       Production for the month was 103.9 million tonnes, down 11.1% compared with July 2008, but up from 99.7 million tonnes in June this year, figures from the World Steel Association showed.
       But for the first seven months of the year output remained 19.9% lower at 652.9 million tonnes compared with the same period last year.
       Crude steel output in China, the world's biggest producer and consumer of the metal, has bucked the trend and rose by 12.6% in July to 50.7 million tonnes.
       This was the first time the country has produced more than 50 million tonnes of steel in a single month, accounting for almost half of the world's total production.

VANACHAI NOW EXPECTS POSITIVE GROWTH THIS YEAR

2009-08-19T20:38:00.001-07:00

       Vanachai Group, a major manufacturer of laminated flooring, has revised its 2009 sales target upward after witnessing signs of a market recovery in the first half.
       Assistant marketing director Sittiwat Sahawat yesterday said the group had previously targeted its sales dropping by 10 per cent this year due to the political and economic uncertainties that have hit the country since the final quarter of last year.
       "Our customers were quite panicky about the situation and most of them stopped ordering products. It caused our sales of laminated floors to drop dramatically by 30 per cent in the final three months of last year," said Sittiwat, who is the third generation of the Sahawat family that founded Vanachai Group.
       "However, we have seen good signs of market recovery since the beginning of this year. There are many ongoing property projects to be further developed this year and that creates strong demand for laminated floors," said Sittiwat.
       He added that the company had sold 600,000 square metres of flooring in the first six months of the year, up 10 per cent from the same period last year. It has also achieved extra growth of 5 per cent in the current quarter.
       "Encouraged by the results so far this year, we are quite confident of achieving [domestic sales] growth of between 12 per cent and 13 per cent for the year. We also expect a dramatic growth in exports, at about 20 per cent this year," said Sittiwat.
       He said the company expected to achieve Bt1.4 billion in sales this year, up from the Bt1.2 billion posted last year. About Bt600 million will be from domestic sales and another Bt800 million from exports to markets including Turkey, Vietnam, Malaysia, Dubai and India. The company exports laminated floors both through original-equipment manufacturing and its own brand.
       "We are however still doubtful about the domestic market next year, as no new property projects have been launched. The future is still uncertain," said Sittiwat.
       He said that the company would next year increase the ratio of exports from the current 60 per cent to more than 70 per cent as a strategic move to cope with the uncertainty over domestic sales.
       The company expects to export to new markets such as the US, as well as paying more attention to existing markets with good potential such as Vietnam and Malaysia.
       Vanachai's factory, located in Ban Bung district of Chon Buri, is now running at only 50 per cent of its capacity of 4 million square metres of flooring per annum. The plant is operating on just a two-shift basis for a total of about 16 hours a day.

Fortescue strikes deal with China

2009-08-18T22:20:00.000-07:00

       Australia's Fortescue Metals yesterday unveiled discount iron ore prices for the key Chinese market in return for up to US$6 billion of financing,ending an industry-wide negotiating impasse.
       The prices,3% better than those offered by Australian miners to Japan and South Korea, follow weeks of uncertainty caused by China's detention of a senior Rio Tinto executive.
       Fortescue said it had agreed to sell iron ore fines - the most commonly traded product - at 94 US cents per dry tonne unit, on condition of completion next month of finance worth $5.5 to $6.0 billion.
       "This ground-breaking agreement cements the strength of the bilateral relationship between Australia and China in which mutual issues can be resolved and future opportunities identified," chief executive Andrew Forrest said.
       "The ongoing market speculation has promoted unprecedented iron ore and steel price volatility, which in turn has created extreme production uncertainties for Chinese steel mills and for suppliers setting individual contracts with those mills.
       "This agreement eliminates that price uncertainty, sets a solid platform for Fortescue to deliver increased product into China and affirms our close working relationship with CISA and all Chinese steel mills."
       The China Iron and Steel Association (CISA), quoted by official Chinese media,said the prices were a drop of 35.02%compared with last year. It added that talks with other miners were continuing.
       "The result was reasonable, objective and market-based, which shall benefit all parties," CISA vice chairman Liu Zhenjiang said in a statement, calling the deal an "important step."
       China's Commerce Ministry welcomed the deal as "positive," spokesman Yao Jian told reporters in Beijing.
       Iron ore imports account for about 50% of total consumption in China, the world's leading buyer of the product.
       Australian producers and CISA had missed the June 30 deadline in yearly iron ore contract talks as China, the world's biggest steel producer and consumer of iron ore, insisted it should get better prices than other Asian mills.
       The negotiations were complicated by the arrest of Rio Tinto executive Stern Hu, an Australian national who was leading the talks, and three of his Chinese colleagues on suspicion of industrial espionage and bribery.
       Rio yesterday shrugged off the deal as irrelevant to its own price talks with China.
       "We do not see this pricing agreement as relevant to our pricing for fiscal 2009,"a company spokesman told Dow Jones Newswires."Rio Tinto conducts its own negotiations with its customers worldwide. Whether and how other producers reach their own agreements is up to them."
       Analysts said Fortescue, Australia's third biggest iron ore exporter, was looking to capitalise on frictions between China and other producers over the contract talks.
       "There is no doubt that Fortescue is looking to take advantage of the poor relations that currently exist between BHP and Rio Tinto with the Chinese,"said IG Markets analyst Cameron Peacock.
       "Andrew Forrest has obviously been going all-out to present himself as a viable alternative for supply of iron ore to Chinese steel mills and based on the agreement announced today they seem to be taking the bait."

Southern Steel expects September public offering

2009-08-18T22:19:00.000-07:00

       Steel products trader and manufacturer Southern Steel (2S) will float 60 million shares priced 1.9 baht each in its initial public offering on the Market for Alternative Investment, with the first day of trade scheduled in September.
       After the IPO, the company's paidup capital will increase to 200 million baht from 140 million baht, with a par value of one baht per share. Debt-toequity ratio will dilute from 0.63 times to 0.49 times, according to financial data ending June.
       Funds raised will be used for business expansion and working capital for materials purchasing to increase bulk orders and improve the delivery process, said director Sangrung Nitipawachon.
       Steel prices remain volatile. After dropping to $400 per tonne in the first quarter from last year's peak of $800, the price rebounded to the current $600.
       "It's a capital-intensive industry. Cash will allow us to grab low prices to help maintain our margins," he said.
       2S is a manufacturer of steel sheets,steel pipes, C-channel pipes and wire mesh. Steel pipes and C-channel pipes contributed about 30-35% each to total revenue, with other products making up the remainder.
       President Sombat Leeswadtrakul said the company reported total revenue of 2.8 billion baht last year. In the first half of this year, it recorded a net profit of 50 million baht on revenue of 1.2 billion baht.
       This year's total revenue might drop slightly due to softening prices. However,sales volume is likely to increase.2S's net profit margin is targeted at more than 4% after reporting 4.9% in the first quarter, he said.
       The company is one of the biggest steel-product manufacturers in the South and Northeast of Thailand, with factories and warehouses located in Songkhla,Surat Thani, and Nakhon Ratchasima.It has almost 400 customers in Thailand and Malaysia.
       "We plan to expand more in the Northeast due to its area and population size.The region also has potentially large demand from government projects. The dustless road project, for example, will be able to drive demand for wire mesh,"said Mr Sombat.
       Chupong Tanasettakorn, managing director of Country Group Securities,2S's financial adviser, said the share booking date is set from tomorrow to Friday.The price-to-earnings ratio of 1.9 baht per share will not exceed 5 times compared to the MAI's average of 13 times over the last three months.

HomePro gains from renovation demand

2009-08-18T22:15:00.000-07:00

       Home Product Center Plc, the SET-listed operator of HomePro hardware stores,says the home renovation market remains strong and should help it achieve 10% sales growth target this year in an otherwise vulnerable home-related products market.
       President Khunawut Thumpomkul said that since the economic downturn had reduced demand for new homes,the company had seen more customers in the home-improvement market, which now makes up 70% of its sales, up from 40% previously.
       "Our shift toward the home renovation market has proved to be a successful strategy," Mr Khunawut said yesterday."There's still a strong demand for homeproduct replacements such as changing carpets, curtains and kitchen fittings."
       He said HomePro had about 200,000 members,35% of whom are active customers.
       Same-store sales at HomePro in the second quarter rose 7.5% from the same period last year but it saw a contraction in tourist destinations due to the impact of political unrest and the H1N1 flu on travel.
       "Our sales in outlets located in beach destinations such as Phuket and Pattaya declined by 5% on average," he said."But growth remains positive since sales in other areas, especially in Bangkok,have not been affected much."
       Political and economic concerns this year have prompted HomePro to delay opening two outlets in Nakhon Pathom and Pattaya. It currently has 35 outlets nationwide.
       Mr Khunawut said the home products market as well as the tourism industry should pick up in the second half no more negative factors emerge.
       The company earlier forecast that Thailand's home-related products market worth 130 billion baht would continue to see declining growth to 5% this year compared with 10-15% during normal times.
       HomePro posted 27.68% net profit growth to 493.93 million baht in the first half, on sales totalling 9.681 billion baht,up 11.7% year-on-year. It targets 10%full-year sales growth from 18.54 billion baht last year.
       The company projects 1.6 billion baht in sales from its 13th anniversary sale campaign running from Aug 20 until Sept 13 at all its branches. It has invested 50 million baht to stage the event with 300 suppliers offering discounts up to 80%. Bangkok Bank, Citibank and UOB are among financial partners offering discounts to credit cardholders making installment payments.
       Shares of HomePro (HMPRO) closed yesterday on the Stock Exchange of Thailand at 6.10 baht, up five satang, in trade worth 2.17 million baht.