TPI Polene to construct new kiln line, Thailand

Thailand-based cement producer TPI Polene is to construct a new line at its Saraburi cement works as steady growth on the local market is expected to continue.

The Bangkok Post reported that company plans to spend THB10bn up to 2016, half of which will be on the clinker line and the balance on a renewable energy project.

The new kiln line will lift capacity at the 9.07Mta Saraburi cement works by 33 per cent. The fourth kiln is a project that has been postponed since the 1997 Asian Financial Crisis. "That year, we had to scrap the project due to the financial crisis. We saw cement demand gradually recover over the past several years. Additional demand will come from the government's train projects over the next seven years," chief executive Prachai Leophairatana told the daily newspaper.

Thai cement demand has been recovering from a slowdown in construction activity which saw cement demand decelerate by five per cent in 2010 and 4.2 per cent in 2011. However, the severe floods which hit the country in 2011 have since boosted growth to 12.1 per cent in 2012 and should do the same in 2013. In terms of actual consumption figures, this translates into a rise from 24.5Mt in 2010 to 28.60Mt two years later.

The company is also preparing to develop a 90MW unit fuelled by municipal waste, pending an environmental review. Some 60MW from the new plant will be sold to the Electricity Generating Authority of Thailand, with the rest consumed by the company.