Siam Cement believes 9% growth is achievable

Siam Cement believes 9% growth is achievable
Published: 19 September 2008

Siam Cement expects to see its turnover increase by about 9 percent this year to THB70bn revenue from over THB60bn last year.

Growth would come from the continuing rise in key product trading volume such as coal, scrap steel and used paper to serve its parent company, Siam Cement and increasing demand for construction materials worldwide.

SCT remains positive about growth prospects for the latter half of the year though it needs to focus on risk control.

"Domestic factors remain unclear as well as international pressure from the financial crisis in the US, so we have to do business in a more risk-protected manner, adopting careful risk insurance, and risk-free letters of credits," said SCT managing director Kalin Sarasin.

Discussing softening fuel costs, Mr Kalin said that the easing of freight costs had supported its business and international trading to a small extent.

For next year, SCT aims to achieve 10 percent growth in turnover and to reach THB150bn within five years, with coal trading as the main driver.

"We could expect to see the energy sector still on the rise next year, both in terms of volume and prices as the industrial sector tends to shift to using coal instead of expensive fuel oil in their boiler systems," Mr Kalin said.

SCT is planning to seek more coal supplies from new locations such as East Kalimantan and Sumatra in Indonesia.