The construction material industry is a diversified market and the growth direction of each construction material product depends on various factors, which relies on users and type of construction taking place each year. In 2017, construction material market started to recover from the previous year as a result of the investment projects by the governmental sector, which is the main drive of an economic condition and main support to the construction material market domestically. The construction material indicating potential in the growth rate through the governmental projects are cement, concrete products, steel and metal products. It can be seen that Thailand’s construction material market relies greatly on the construction and real estate industries, resulting from the economy stimulus of large state investment projects such as the development of motorways, rail transport infrastructure including Bangkok Sky Train projects in Bangkok and perimeter, intercity dual-track railways, and medium-high speed railways. Moreover, there is a positive sign from the governmental sector’s investment in the Thai-Chinese high-speed railway project that started the construction from 21 December, 2017. Even the initial investment is not large, but it creates clarification and this is the same manner for investments that continue to grow slowly as most investors are waiting for the EEC bill to be taken. The construction material industry is expected to grow accordingly from such privileges.
The company gained orders from the large investment projects by the governmental sector aforementioned from the high-speed dual track railways, the development of motorways, and in 2017, there were many developments happening including;
- Completion of treasury stock repurchase project for 165,000,000 shares and re-issued all of the treasury shares during 1-15 February, 2017. However, the treasury shares could not all be distributed, the company, therefore, decreased all registered share capital by reducing the number of outstanding unsold totalling shares and decreased all registered share capital and fully paid up share capital from amounting of Baht 4,728,445,610.65 to Baht 4,588,195,610.65, which can be divided to 5,397,877,189 shares with a par value of Baht 0.85 per share.
- The establishment of subsidiary company for an investment purpose of manufacturing and retailing “Spun Pile Concrete”. This is a joint venture between Nippon Concrete Industries Co., Ltd. (“NC”), a registered company in Japan, which signed the “Joint Venture Agreement” with the company. The construction is expected to complete within 2018.
- The capital expenditure to construct a manufacturing and retailing the special qualified PC Wire and PC Strand by Seven Wire Co., Ltd. (subsidiary) for Baht 30 million. Due to the delay of an approval process in permitting the construction and additional costs involved in the wiring poles to support the electricity usage from the Provincial Electricity Authority. The commercial is expected to launch by 2018.
It is a pride to the company for earning the CG score in 4-star, which has improved from 3-star. This is an excellent direction for the Company in reflecting our commitment to demonstrating good corporate governance to customers, suppliers, employees, shareholders, local residences and through to people involved.
The Company aims for a sustainable long-term growth and strongly confidence in transparent management, focusing on anti-corruption and sees one’s principle of good corporate governance. The Company also aims to move forward with integrity, honest, and trustworthy. This will ultimately profit our employees, shareholders and all stakeholders in the long run.
Last, the Company is proud to inform our shareholders and stakeholders that even we face many obstacles from the fierce competition, political situation, or uncertain economic condition, the utmost determination and dedication of the management and employees, cooperation to solve problems from all parties involved through to changing the management strategy under various circumstances will lead the Company to attain the desired goals.
Finally, on behalf of the Board of Directors, I wish to express my heartfelt gratitude to all customers, and shareholders for supporting the Company all along, and thank all the Board of Directors, management, and employees for the devote dedication to the Company.
Chairman of the boards of directors