Overall growth of construction material sector in 2015 grew slightly higher mainly due to global economic downturn, deferring of the government mega project approval process, and delaying of national budget spendings. Nevertheless, in the 4th quarter, the government announced economic stimulus measures such as income tax reduction package for buying a house that value not more than 3 million Baht as well as promoting housing mortgage for low income earners. As a result, the construction business is expected to vividly benefit from such policies in early of 2016.
Besides deriving profit from the core business, the Company also vitally see opportunity in business expansion to other related businesses in order to reduce cost as well as promote synergy. This would help strengthen the Company business and reduce risks of raw material shortage. As a result, the Company has extended its production bases to eastern seaboard area, which is considered to be the major industrial area of the country with significant economic growth. The company has purchased lands in industrial estate for 175 Rais in Rayong. To begin with, the Company has established the subsidiary company to invest in the production and distribution of PC wire/ PC strands and cold drawn wire plant in order to mainly support a growing consumption of the Company itself. Moreover, the products would also be an alternative source of supply to the growing domestic demand in the near future.
Back in 2014, the Company jointly invested in the plant construction for production and distribution of structural steel in Myanma. The plant construction is expected to be completed and and ready for production and distribution in the first half of 2016.
Currently, there is high level of competition within the constructional materials industries, and The reduction in sale price is strategically inevitable. Consequently, this year, the Company aims to reduce cost of production by seeking for alternative sources of raw materials at a lesser cost, controlling production with increase effectiveness and optimal lost, as well as providing further knowledge for professional development of the employees. In 2016, the Company will apply additional internal management systems, which are the use of ERP (Enterprise Resource Planning), Sales Force, and Performance Management in order to support effective management. Following such management strategy, the Company ultimately aims to be the national leader of the constructional materials industry in Thailand
The Company strongly believes that the strategic approach mentioned above will yield acceptable revenue and turnovers, as well as providing good image and earning trust from the customers, and most importantly creating a solid foundation for a sustainable development of the Company in the future.
Chief Executive Officer