Siam Cement sets its sights on U.S.
The Siam Cement Group (SCG), the second largest company in Thailand and the country’s largest cement supplier, is planning to begin exporting building materials once again to the United States, according to an article in the Bangkok Post.
Kan Trakulhoon, president and CEO of the industrial conglomerate, made his remarks during the Jan. 4 opening of the BoI Fair, a green technology event being held in Thailand this month. He said that a team has been assigned to prepare the group's re-entry into the U.S. market after positive economic signs. These indicators include a rebound in the U.S. stock exchange and the 7% growth in housing sales during November 2011.
The United States was once one of SCG's biggest export markets, accounting for 20% of shipments in 2006. The company even found it profitable to ship bulky products like cement to the U.S. West Coast.
But demand dropped sharply during the housing bust, and the United States now represents only 1% of SCG’s shipments. Kan observed that the U.S. economy has clearly bottomed out, with a steady recovery expected from now on.
"We see an opportunity to boost petrochemical sales there, especially high value-added products that are competitive in terms of cost," he said. SCG also remains strong in the building materials market, Trakulhoon said, pointing to the Cotto roofing products for sale at Home Depot stores.
Exports make up 29% of SCG's revenue. Taken together, Asian countries make up 40% of that figure.
SCG is comprised of 100 companies divided into five business core groups: chemicals, paper, cement, building materials and distribution.