Siam City revises 2012 demand forecast upwards

Siam City Cement, part of the Holcim group, has revised upwards its 2012 cement consumption outlook to six per cent due to good economic growth and the expected launch of government flood-prevention projects in the second half. Earlier the company had anticipated growth of five per cent.

Chief executive Philippe Arto told the Bangkok Post that the market expanded by 6-8 per cent in the first half of 2012 driven by private sector demand.

"The market recovery is starting, although property developers have to revisit their plan," said Mr Arto, while noting that the government's promises of flood prevention projects have yet to materialise.

Chantana Sukumanont, the executive vice-president for marketing and sales project said the government is expected to begin launching projects soon which will drive demand in the second half. "Now is the time for the government to speed up the projects and restore confidence," she noted.

Meanwhile, Fitch Ratings (Thailand) has affirmed Siam City’s National Ratings at Long-Term "A(tha)" and Short-Term "F1(tha)". The Outlook is Stable. At the same time, Fitch has affirmed SCCC's senior unsecured debentures at "A(tha)".