Thailand: Siam Fiberglass looks to growth of 5-10%

Despite an obvious slowdown in the property and construction industry, Siam Fiberglass, the country's leading manufacturer of thermal insulation, is optimistic about achieving revenue growth of 5-10 per cent this year.

"Although insulation demand in the new housing market has dropped drastically, we see a big opportunity to penetrate renovated houses and office buildings instead," said marketing manager Salin Kuntanarumitkul.

The company, which is under the umbrella of the Siam Cement Group (SCG), forecasts that demand growth in the new housing market will contract by 10-15 per cent from last year, while growth in the renovated market will expand 10-15 per cent. It expects the overall thermal insulation market will grow by 10 per cent from last year's Bt1 billion.

Siam Fiberglass recorded revenue of Bt510 million last year, an annual increase of 10 per cent. This was split equally between the domestic and export markets.

It plans to boost revenue in 2009 mainly from the domestic renovated-home market, while it expects no growth from exports as a result of the global economic slump.

The company's main export markets are Australia and Asean, particularly Indonesia and Malaysia.

Of domestic sales last year, 40 per cent was generated from selling thermal insulation to housing projects and industrial buildings, 35 per cent from personal accommodations, 20 per cent from auto and other industrial uses, and 5 per cent from acoustic insulation.

He said the company had allocated a budget of Bt20 million to promote its insulation products this year. Of that, 80 per cent will concentrate on using below-the-line activities and educating customers.

"Apart from the below-the-line activities, we will expand our distribution channels by collaborating with HomePro and Boonthavorn, and sell both products and solution services via our website," Salin said.

Moreover, Siam Fiberglass has developed innovative products by making synergy with other construction-material firms under SCG in order to make products matching customers' requirements.

"The market has shown signs of tough competition in terms of pricing strategy. Therefore, we have to create value-added products and solutions to maintain our margin," he added.

Siam Fiberglass is the market leader with a 70-per-cent share in the personal housing market and a 45-per-cent share in property projects and air-conditioning.