SCG plans maximised production

SCG plans maximised production
Published: 23 November 2011

Siam Cement Group (SCG) has ramped up production at its plants and is ready to slash prices of some building materials by as much as 60% to serve an expected post-flood jump in demand.

Thailand’s top industrial conglomerate experienced a 40% drop in cement sales in the Central region in October, while building material sales fell by 20-25% when the floods approached provinces to the north of Bangkok.

"Plants that have suspended production earlier [due to flooding] such as cement and fibre cement facilities, have resumed and ramped up to maximum capacities," said Kan Trakulhoon, the president and chief executive.

"We expect all the group’s factories to run at full capacity by next year’s first quarter," Mr Kan said.

"The fourth quarter will be tough for us in terms of sales," he said, adding that about 200 out of more than 500 dealers had been affected by floods.

Nonetheless, Mr Kan acknowledged that the group’s investment plan has not changed despite the floods.

But the business plan that was drafted in September will be reviewed next month to determine the actual business environment after the floods, he noted.