Siam Cement Group (SCG) has forecast increased demand for cement this year due to infrastructure projects, while expressing concerns over exports due to the strengthening baht.
SCG President and CEO Rungrote Rangsiyopash revealed that sales last year totaled over 450 billion baht– an increase of 6% from the previous year– due to price hikes in chemical products. However, profits fell by 2% to 550 billion baht, due to fierce competition in the cement and construction industries.
Rungrote expects sales this year to increase by 5% despite risings petrochemical and energy costs, as demand for cement is expected to rise due to government infrastructure projects.
The SCG executive also warned that a stronger baht would negatively impact the export sector. He explained that for every 1 baht appreciation against the US dollar, SCG loses 2 billion baht in profits.
As for the company’s strategy for this year, Rungrote said SCG will focus on partnering with startups and readying its staff for new logistics markets in ASEA