Prospects have improved for the local paper industry due to a revival in overseas demand and prices, says Siam Cement Group.
Thailand's top industrial conglomerate said the demand for paper fell by almost 20% in the first half when compared with the same period in 2008 due to the sluggish economy. But the figure has improved in the second half due to larger exports, Chaovalit Ekabut, the president of SCG Paper, said yesterday.
Orders rose in the second quarter over the first three months while third quarter orders remain steady."The overall consumption of paper this year will be lower from last year but it should not be a double-digit decline," he said.
Paper prices, which fell 15% to 20%in the first half year-on-year, have started rising. The prices are now lower than last year's peak by 10% to 15%, Mr Chaovalit added.
The company is focusing on high value-added products to increase their contribution to its overall portfolio to 25% in 2010, up from 20% this year, to enjoy higher profit margins.
SCG Paper, Thailand's largest paper manufacturer, yesterday launched a coffee-cup sleeve produced from recycled paper that comes with a "Thermozense"heat indicator which will be available at True Coffee cafes.
Mr Chaovalit said the new product has been developed under SCG's principle of "green inspiration", which promotes environmental responsibility among consumers. An initial run of 100,000 heat indicators has been produced. The colour of the sticker changes from red to white as the coffee cools.
"True is aiming for technology that enables us to have a better experience in our daily lives and SCG has helped us by creating the innovation that we have been searching for for a long time," said Papon Ratanachaikanont, assistant to the president of True Corp.
"In the past, we depended on foreignmade products by using coffee sleeves imported from China. Now that there are new sleeves from SCG, it will lower our cost by 30%," he said.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 224 baht, down 5 baht, in trade worth 356 million baht.
Monday, September 28, 2009
TREND RISKS REDUCED BY HIGH VALUE-ADDED
SCG Paper, a business unit of the Siam Cement Group, plans to boost its proportion of revenue from high value-added paper to 25 per cent by next year.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
Thursday, September 24, 2009
ASEAN EXPORT ORDERS A BOON TO PRINTERS
The printing industry expects its exports to rise by up to 15 per cent this year mainly on advance orders from the Asean market.
Kriengkrai Thiennukul, chairman of the Printing and Paper Packaging Industry Club of the Federation of Thai Industries, said yesterday that the main factor encouraging the industry for next year is orders from Asean, which accounts for 60 per cent of total printing exports. Overseas importers have placed orders for three to six months in advance.
However, total printing sales this year were expected to be flat at US$1.45 billion or about Bt50 billion, he said.
If markets abroad could improve next year, exports are estimated to reach Bt55 billion-Bt60 billion. The industry shifted its focus to Asean a few years ago as it saw stronger performance in this region than in the US and Europe.
Printing exports in the first eight months of this year dropped by 9 per cent from the same period last year, but the export performances of other Southeast Asian countries were worse, declining 10-20 per cent.
The Printing and Paper Packaging Industry Club formerly targeted the country to be the printing hub of Asia.
Pornchai Rattanachaikanont, president of the Thai Printing Association, said manufacturers this year could export more kraft paper to Japan, and cardboard paper to India and Saudi Arabia.
The industry has also gained a positive outlook for this quarter, as there are promising orders for Christmas and New Year from both local and overseas markets.
Thailand is now hosting Pack Print International 2009 and the Thai Inter-national Plastic and Rubber Exhibition, which open today and continue to Saturday at the Bangkok International Trade and Exhibition Centre. Some 400 printing, packaging, plastic and rubber manufacturers from 20 countries are joining the exhibition.
Messe Dusseldorf Asia, the organiser, expects the event to attract about 20,000 visitors over its four-day run.
Kriengkrai Thiennukul, chairman of the Printing and Paper Packaging Industry Club of the Federation of Thai Industries, said yesterday that the main factor encouraging the industry for next year is orders from Asean, which accounts for 60 per cent of total printing exports. Overseas importers have placed orders for three to six months in advance.
However, total printing sales this year were expected to be flat at US$1.45 billion or about Bt50 billion, he said.
If markets abroad could improve next year, exports are estimated to reach Bt55 billion-Bt60 billion. The industry shifted its focus to Asean a few years ago as it saw stronger performance in this region than in the US and Europe.
Printing exports in the first eight months of this year dropped by 9 per cent from the same period last year, but the export performances of other Southeast Asian countries were worse, declining 10-20 per cent.
The Printing and Paper Packaging Industry Club formerly targeted the country to be the printing hub of Asia.
Pornchai Rattanachaikanont, president of the Thai Printing Association, said manufacturers this year could export more kraft paper to Japan, and cardboard paper to India and Saudi Arabia.
The industry has also gained a positive outlook for this quarter, as there are promising orders for Christmas and New Year from both local and overseas markets.
Thailand is now hosting Pack Print International 2009 and the Thai Inter-national Plastic and Rubber Exhibition, which open today and continue to Saturday at the Bangkok International Trade and Exhibition Centre. Some 400 printing, packaging, plastic and rubber manufacturers from 20 countries are joining the exhibition.
Messe Dusseldorf Asia, the organiser, expects the event to attract about 20,000 visitors over its four-day run.
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