SCG Ceramics aims to bounce back with 3-5% revenue growth in 2020, driven by new and expanded construction projects from the public and private sectors.
The company is continuing with a restructuring plan in order to cut production costs, improve after-sale services and upgrade manpower, so overall operating costs for SCG Ceramics are expected to decline further this year.
The company produces and distributes floor and wall ceramics under three brands: Cotto, Campana and Sosuco.
SCG Ceramics is a subsidiary of SCG Cement-Building Materials.
Managing director Nampol Malichai said the government will carry out the flagship Eastern Economic Corridor scheme by attracting new companies to expand their operations in Thailand.
The government has launched many economic stimulus packages to boost Thai GDP and build confidence in consumption and investment, therefore demand for ceramics will increase this year, he said.
"There will be significant growth in the second half of 2020 because many construction projects are projected to start in that period," Mr Nampol said. "Thailand's ceramics market has a value of 30-35 billion baht per year."
SCG Ceramics yesterday posted 2019 revenue of 11.07 billion baht, a 4% year-on-year drop. Gross profit for the period rose by 6.3% to 168 million baht, led by a reduction in production costs and an improved marketing plan.
Last year's gross profits stemmed from developing and selling plots at Nong Khae Industrial Estate in Saraburi province.
In 2019, SCG Ceramics had export revenue of 1.94 billion baht, a 3% year-on-year decline. Exports are largely to Southeast Asia (1.37 billion baht) and Japan and Australia (576 million baht).
Export revenue accounted for 17% of total revenue.
"The export contraction came from a decline in export exposure after Indonesia's government imposed import duties on construction ceramics a few years ago," Mr Nampol said.