SCG predicts flat construction field

SCG predicts flat construction field

SCG Cement-Building Materials forecasts a bearish construction sector in 2019, pressuring its cement distribution through the digital platform. (Bangkok Post photo)
SCG Cement-Building Materials forecasts a bearish construction sector in 2019, pressuring its cement distribution through the digital platform. (Bangkok Post photo)

SCG Cement-Building Materials forecasts a bearish construction sector in 2019, pressuring its cement distribution through the digital platform.

The company expects revenue to stay flat at 23 billion baht this year.

SCG uses the digital platform to support business-to-business buyers in the cement and construction business.

Chana Poomee, vice-president for cement and construction solutions, said the bearish sentiment is because many megaprojects are still awaiting approval and budget disbursement.

"SCG hopes these megaprojects will begin construction from 2020," he said. "Once the government starts its investment and spending, the private sector will begin new investment and expansion, helping the construction sector recover."

Mr Chana said the construction materials market is also flat, in line with the construction sector. In 2018, the market had a value of 1.4 trillion baht.

SCG Cement-Building Materials posted revenue of 183 billion baht in 2018.

This company represented 12.6% of SCG's 2018 revenue.

He said SCG is considering discounting prices of construction materials in flooded provinces to help locals repair their residences.

In related news, SCG has offered its solution business as part of a subsidiary: Concrete Products and Aggregate Co (CPAC).

Mr Chana said SCG's digital platform provides quality, speedy, cost-effective and worry-free construction work, reducing the generation of waste.

SCG aims to establish 20 CPAC solution centres nationwide, up from nine now in Chiang Mai, Khon Kaen, Phitsanulok, Phuket, Surat Thani, Ubon Ratchathani, Chon Buri, Nonthaburi and Nakhon Pathom.

"SCG will spend 10-20 million baht to establish each centre," he said.

It plans to expand its network of local technicians and contractors from 2,000 to 20,000 by 2020.

Mr Chana said SCG wants to support provincial centres in exchanging construction knowledge, techniques and solutions in their network.

The company's cement and construction solution business emphasises business-to-business buyers in large-scale construction projects such as roads, expressways and airports, but wants to help business-to-customer buyers soon, he said.

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