Asia Cement sees slower 2014 revenue growth

Asia Cement, the Thai-based subsidiary of Italcementi, expects slower revenue growth next year due to a weaker economy and domestic demand.

While this year's revenue is estimated to rise 17.6 per cent to THB10bn, next year revenue growth is expected to slow to four per cent, according to Asia Cement's co-managing director Nopadol Ramyarupa.

"The economic slowdown and revised GDP figure have affected our projection," said Mr Nopadol told the Bangkok Post. Thailand's economy fell into recession in the first half of this year after the economy shrank unexpectedly in the second quarter. The country''s finance ministry today cut the outlook on growth for 2013 to 3.7 per cent from 4.5 per cent projected in June due to weak exports and slower domestic demand.

In terms of fuelling future cement demand outlook, Asia Cement co-managing director Roberto Callieri said: "We hope that the THB2trn in infrastructure projects, if approved, will stimulate the construction sector and maintain our optimistic growth projection of four per cent over five years."

Asia Cement is Thailand's fourth largest cement producer by capacity, and operates on 5Mta cement works. It is one of two Thai-based cement companies operated by Italcementi, the other being Jalaprathan Cement Public Co.