Cost-cutting key as growth momentum slows

The Siam Cement Group, the country’s largest industrial conglomerate, has forecast that the building material industry will be stagnant this year despite the continued growth in sectors such as low-income condominiums. 
 
"We’ve seen the downtrend of demand since last year as even the sales growth of our building products was a bit lower than the target," said Kajohndet Sangsuban, the president of Cementhai Distribution Co, the company’s building materials flagship.  
 
SCC, one of the leading manufacturers of building products in Asean, reported sales growth of nearly 10% last year, slightly lower than its earlier target of above 10%.  
 
The company’s building product business posted revenue of THB17.35bn in the first nine months of last year.  The industry has been affected by a surge in operating costs due to higher oil prices and interest rates. Southern violence and flooding in many provinces have also had an impact on trade.  
 
Mr Kajohndet said the company had set a sales growth target of 10% in 2006.