Thailand: Asia Cement predicts revenue growth deceleration

Italcementi-owned Asia Cement expects slower revenue growth in 2014 as it forecasts a weaker domestic market and uncertainty over the government’s THB2trn (US$64bn) infrastructure investment, according to the Bangkok Post.

Nopadol Ramyarupa, co-managing director of Thailand’s fourth-largest cement maker, said he expects revenue growth to be limited to four per cent. This year’s revenue is estimated at THB10bn, up by 17.6 per cent from last year’s THB8.5bn.

"The economic slowdown and revised gross domestic product figure have affected our projection," said Mr Nopadol, as he explained that growth in the cement industry is strongly linked to the country's economy and to the construction sector in particular. 

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 has a 14 per cent share of Thailand's  33Mta cement market. The company is currently operating at 80 per cent of its 7.3Mta capacity at its cement plants in Saraburi, Nakhon Sawan and Phetchaburi provinces.