Trade Resources Market View Asia Cement Projects Slower Revenue Growth Next Year

Asia Cement Projects Slower Revenue Growth Next Year

Asia Cement, the Thai unit of Italy s Italcementi Group, projects slower revenue growth next year on a likely weaker domestic market and uncertainty over the government s THB 2 trillion infrastructure investment.

Co-managing director Nopadol Ramyarupa said Thailand s fourth-largest cement maker expects revenue growth of only 4 per cent in 2014.

This year s revenue is estimated at THB 10 billion, up by 17.6 per cent from 8.5 billion last year.

"The economic slowdown and revised gross domestic product figure have affected our projection," said Mr Nopadol, adding that growth in the overall cement industry is heavily tied to the country s economy and to the construction sector in particular.

Co-managing director Roberto Callieri said: "We hope that the THB 2 trillion in infrastructure projects, if approved, will stimulate the construction sector and maintain our optimistic growth projection of 4 per cent over five years."

Asia Cement has not been affected by the labour shortage or the increase in the daily minimum wage to THB 300, he said.

"Most of our labour problems are related to the rice harvest season and contained to that period alone. The rest of the year, we re not affected," said Mr Callieri.

Asia Cement has a 14 per cent share of Thailand s annual 33-million-tonne cement market.

At present, the company is operating at 80 per cent of its combined annual capacity of 7.3 million tonnes at its factories in Saraburi, Nakhon Sawan and Phetchaburi provinces.

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Asia Cement Forecasts Slower Revenue Growth in 2014
Topics: Construction