Mr Thongchai projects the overall roof market remaining bearish, but SCG is keen on launching a solar rooftop solution.
SCG Cement-Building Materials projects Thailand’s roof market in 2019 to shrink by 2-3% from 20 billion baht in 2018, attributing the shift to consumers in metropolitan areas preferring single detached houses and townhouses over high-rise condominiums.
The roof market is controlled by single detached houses and townhouses, making up more than 80%, while the remainder goes to condo projects.
Thongchai Sopon, managing director for SCG’s roof business, said the unit is trying to drive its sales in 2019 amid the bearish market.
“We expect sales growth of at least 2-3% from 7 billion baht in 2018,” he said.
“SCG will lead with its innovation and technology for residential roofs such as launching solar rooftop solutions.”
Mr Thongchai said demand for solar rooftops is rising as many property owners want to generate their own power.
SCG forecasts the total solar panel market will reach 40-50 billion baht in 2019.
“There are many distribution channels for solar panels, making them more accessible and affordable,” he said.
Moreover, the power regulator is encouraging households to install solar rooftops as part of a new scheme for 100 megawatts of power generation in 2019.
The scheme aims for new power generation from solar rooftops to reach 10,000MW by 2037.
“SCG’s roof unit aims to secure sales of solar rooftops worth 4 billion baht in 2019,” said Mr Thongchai. He also said SCG is the first company to provide a solar rooftop solution focusing on retail consumers and households.
Mr Thongchai said SCG is in talks with two property developers — Land and House Plc and SC Asset Corporation Plc — to expand its solar rooftops as wholesalers.
In a related development, Siam Cement Group (SCG) announced last Friday it invested 21.2 billion baht (US$655 million) in PT Fajar Surya Wisesa Tbk (Fajar), one of the largest packaging paper providers in Indonesia.
Roongrote Rangsiyopash, SCG’s president and chief executive, said the company’s packaging business bought a 55% stake in Fajar and expects to complete the transaction in the third quarter.
“SCG is exploring the feasibility of raising equity at its packaging level, and this is expected to be completed by the end of 2019,” said Mr Roongrote.
