Siam City Cement to focus on cost-cutting, Thailand
Siam City Cement PCL, Thailand’s second largest cement maker, is focusing on cost-cutting to shore up its profitability amid declining domestic demand and fierce competition.
Siam City Cement, 35% owned by Holcim, expects to see a 5%-10% decline in the domestic cement market in the wake of the global economic slowdown and sluggish domestic activity, Managing Director Philippe Arto said Thursday.
Domestic cement demand was around 24.5Mt last year. The company has around 27%-28% of the domestic market.
The company targets to cut its fixed costs this year by around 20% and lower its energy costs, said Arto.
It is constructing a THB1.7bn power plant project, which will reduce energy costs by around THB500m a year.
The project, which will generate 25MW of electricity, is scheduled to start operations in June next year, he added.
The company’s total capacity stands at 14.5Mt. It declined to elaborate on its production target this year. The company exports around 25% of its total output to Asian markets.
Published under Cement News
