Siam City Cement aims 2005 domestic sales to rise 10%-11%

Siam City Cement PCL Thailand’s second-largest cement producer, aims to increase its domestic cement sales this year by around 10%, a company executive said.

"We target domestic sales growth of around 10%-11% to maintain our market share of 27%," said Chantana Sukumanont, the company’s executive vice president.

Last year, its average production was more than 9Mt, including exports, she added.

Thailand’s cement market this year will expand by around 12%-15% from 28Mt in 2004, thanks to numerous residential development projects as well as the government’s plan to invest in mega infrastructure projects, said Chantana.

She added rising energy costs are likely to limit the company’s margins. However, the company will place more emphasis on alternative fuels and cost reduction measures to improve margins.

Chantana said the company this year will run at its full capacity of 12.3Mt to reduce production costs per unit. Of the output, around 3Mt will be exported.

Siam City Cement, a unit of Swiss group Holcim Ltd, is scheduled to report its 2004 earnings by February.