Thai Gypsum expects lift from energy law

BUILDING MATERIALS

Thai Gypsum Products, a leading gypsum-board manufacturer, expects sales of insulators for building construction to increase significantly after the recent introduction of an energy-saving law for buildings and factories.

The Controlled Buildings and Factories Act encourages owners of buildings with an area of more than 2,000 square metres to lower the amount of heat used to save energy.

It will have an effect on the use of all types of insulators as well as the overall design of the buildings, said Valit Jiyavorananda, sales and marketing director of the company, a wholly owned subsidiary of Paris-based Saint-Gobain group.

According to the Energy Information Administration, buildings are the highest energy consumers with 40% of global carbon dioxide emissions.

Mr Valit said the company expected an increase of 1% to 3% in sales next year, helped by its new Gyproc ThermaLine product. It comprises a gypsum board with a 59- millimetre foam insulator that prevents heat from entering five times more effectively than normal gypsum board, he said.

Although the price of 278 baht per square metre is twice as expensive as normal gypsum board, Mr Valit said the product, which has received a green label from Singapore and New Zealand, helps save 69% on electricity costs if installed on walls and ceilings compared to normal gypsum board.

He expects the product to add around 2,000 to 3,000 square metres per month to gypsum board sales.

The company has maintained a conservative target, and its only worry is politics, he said. If there are no flare-ups, the increase in sales next year could exceed 5%, he said.

He expects ThermaLine to also help expand the overall market. Only 2% of walls use gypsum board, with residential buildings occupying the largest share, while the rest use ordinary brick walls, said Mr Valit.

"This is because Thais are not accustomed to gypsum walls," he said, adding people would use ThermaLine since it is not hollow.

The company will also open a new Gyproc branch in Bangkok at the beginning of next year. The centre will provide consultancy on products, design, installation and technical details for retail customers.

The first centre opened in April in Pattaya.