Chonburi Concrete eyes 20% growth in 2012
Chonburi Concrete Products Plc targets growth of 20 per cent this year thanks to strong demand for concrete and prefabricated products from the residential market.
The company also aims to clear its retained losses of Bt285 million, as of March 31, by 2014, managing director Chakrit Theepakornsukkasame said at a site visit last week.
The company believes that its total revenue will reach Bt2.2 billion-Bt2.3 billion for the whole year after first-half revenue came in at Bt1.1 billion, he said. It also has a backlog worth Bt2.3 billion running into next year and plans to bid for Bt2 billion worth of orders in the rest of this year.
Demand for ready-to-use concrete and prefabricated products has been growing strongly. Most developers have reduced their labour costs and need to speed up construction to deliver residences to their customers on time, so such products are a good choice for them.
The firm’s sales to the private sector, especially developers, increased from 40 per cent of its total revenue last year to 50 per cent this year. The remaining 50 per cent was generated by sales to state agencies developing infrastructure projects.
The market outlook for ready-to-use concrete and prefabrication products is bright for next year, following the government’s policy to expand infrastructure such as highways, Skytrain lines and subway routes. This will drive its sales up 10-15 per cent over this year.
However, its production capacity is still enough to support market demand next year.
Overall demand for concrete products is increasing 6-7 per cent a year.
