Thailand’s largest manufacturing conglomerate, Siam Cement Group, plans to start a new building-services company, as it branches out into the service industry for the first time. The new subsidiary, which will be called Cementhai Home Services, will specialise in providing construction materials and subcontracting such services as installing bathrooms and roofs, said Kajohndet Sangsuban, head of the conglomerate’s building-products business. The company will also start selling home warranties to people who buy homes it helps build. The warranties will cover potential problems and provide after-sales service. Customers will pay a monthly or annual fee to keep the warranty in force.
Cementhai Home Services will be "a value-added operation aimed at providing better service to Siam Cement customers", Kajohndet said. The new Siam Cement’s subsidiary is not expected to generate huge profit at least in initial stage.
He said the new endeavour would not compete with contractors, but rather partner with them in building homes. If they choose, contractors can use Cementhai Home Services just to supply Siam Cement group’s building materials.
Kan Trakulhoon, Siam Cement’s heir apparent for the president’s mantle after current president Chumpol Na Lamliang retires later this year, recently said manufacturing margins would continue to be squeezed. To ensure the company’s future prosperity, he said, it must pay more attention to marketing and research and development (R&D). Siam Cement this year plans to spend Bt2.5 billion building up its construction-materials units.