Cement price remains stable despite higher demand
Cement price remains stable despite higher demand
The Souksomboon Group, a large cement producer in Laos, is still confident its sales will increase by around 10 to 20 percent next year due to building expansion and the growth of the country's economy.
This year, the group's sales increased by 10 percent compared to the previous year, company marketing officer, Ms Damdy Phommaxay told Vientiane Times yesterday.
She noted the sales increase came despite the fact the government has recently ordered the suspension of some construction projects due to current financial difficulties.
The price of cement products has remained stable compared to last year but she noted they may increase this coming dry season due to the ramping up of projects delayed by wet season rains.
Currently, the cost of Elephant Brand Cement is 740,000 kip per tonne for the red logo and 650,000 kip per tonne for the green variety.
Meanwhile Lion Brand Cement is 760,000 kip per tonne for the red colour and 680,000 kip for the green, Ms Damdy reported.
Most cement products produced by the group still go towards supplying domestic customers, she said.
Due to the insufficient cement supply on the domestic market over the last few years, the cost of products has increased as a consequence, Ms Damdy said. The group plans to produce its own products for export to overseas markets once it can produce enough to satisfy the domestic market, she added.
Souksomboon Group has the capacity to produce about 5,000 tonnes of cemen t per day. It plans to increase this to 10,000 tonnes after building another cement factory in Khammuan over the next few years, it was reported to local media earlier t his month.
The group will then use these factories as the central focus for the expansion of their market sharein Laos and Thailand as well as other Asean countries.
Revenue from Souksomboon Group's cement operations currently runs into the hundreds of millions baht per annum, Ms Dandy reported.
The group comprises seven companies in total with interests in cement transportation, logistics, petrol stations, wood products, construction and real estate.
However, cement production remains the Souksomboon Group's core business.
All told, cement factories in Laos currently produce about 1.7 million tonnes a year but demand has soared to 3.5 million tonnes per annum as the economy powers ahead.
The boom in infrastructure development will require vast amounts of concrete. Many large projects especially hydropower plants and different foreign investment projects are still importing cement products.
vientiane times
