Philippines: building materials firm SCG sees 18% growth

Thailand’s SCG Group sees revenues on its building materials venture in the Philippines would increase by 18 percent from last year due to continued strong demand for its products, officials of the company said yesterday.

Jakkrit Suwansilp, vice president for sales and marketing of Mariwasa Siam Ceramics, a subsidiary of SCG in the Philippines, said the group chalked up sales of P6 billion in 2012, which was 50 percent more than 2011.

Suwansilp said last year’s growth was pushed by SCG’s acquisition of local tiles maker Mariwasa in April 2012. Mariwasa accounted for half of revenues, or P3 billion, in 2012.

Suwansilp said Mariwasa is spending P100 million to upgrade its facility in Sto. Tomas, Batangas, where it produces such innovative products as the “Slim Tile” which at 5.8 millimeter is half the thickness of regular tiles.

Last year’s growth was also attributed to a strong acceptance of the firm’s fiber cement board which recorded 40 percent more in sales.

SCG and another brand, Cotto, offer both constructive and decorative products like roofing, fiber cement board, fiber cement wood substitute, thermal and acoustic insulation, ceramic tiles, sanitary ware and fitting.

Suwansilp said SCG would begin to offer this year modular solutions from roofing, walling to flooring, and insulation to the local market. He sees opportunity for the company to grow its business in the growing Philippine economy.

Aside from Mariwasa which makes floorings, SCG’s other local manufacturing is through CPAC Monier Philippines which makes roofings.

Its other fiber cement and decorative products are imported from Thailand.

Suwansilp said aside from the local residential and commercial and high-rise property development, the public-private partnerships would boost SCG’s business in the Philippines.

He said the company would also introduce in the Philippines more of its energy-efficient products and innovative insulation solutions such as those with heat absorption and noise reduction and other “green” products and decorative ceiling.

Mariwasa would also be the first to produce the slim tile in the country.

He said with more domestic production, the proportion of products they will import this year would go down to 75 percent from 83 percent in the past.

Higher efficiency in cost is provided by Mariwasa’s P450-million 45 megawatt biomass plant.

The company has 1,300 employees.

Source: Malaya Business Insight

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