Bangkok--19 Oct--PR Solution
Siam Fiberglass highlights its potential of an energy-saving innovative product character to ease global warming. The company is strongly confident of achieving the revenue growth target of 40% in 2010, thanks to solid sales from various Tra-chang insulation products in the first three quarters. It is stepping up effort to penetrate the Asian market.
Siam Cement Group’s headquarters in Bangsue : Siam Fiberglass, the building materials arm of Siam Cement Group, has strengthened its insulation products pioneering potential under the Elephant brand, after gaining substantial windfall profits from the global warming effect this year. Siam Fiberglass has enjoyed revenue growth of as much as 25% this year, exceeding the initial target of 15% planned earlier. The company plans to spend more than 30 million baht to aggressively promote marketing activities in 2011 in dimension of below-the-line and above-the-line approaches in line with the Tra-chang philosophy. It will continue focusing on developing innovative insulation products for house and acoustic through a synergy of SCG’s construction materials and distribution units. The goal is to produce variety of efficient creations to serve demand and usage of targeted customers. The company will also continue expanding into new emerging markets, Green Building segment in particular, as well as widening distribution channels to efficiently reach targeted users. In addition, Siam Fiberglass was on the verge of improving its production potential to accommodate growing demand in local and overseas. Siam Fiberglass is confident that the company’s Elephant insulation business is set to grow by 40% in 2011.
Sunchai Hangchaicharoen, the managing director of Siam Fiberglass (SFG), said the country’s insulation market for building projects started seeing a strong rebound in the third quarter after facing the political crisis, fuelled by the recovery of construction and real estate sectors .“We expect overall insulation projects to grow by 10-15% this year, driven mainly by private investments and the government’s economic stimulus measures,” he said. SFG this year remained concentrating on enhancing residential and acoustic markets even at the introduction stage. Currently, the Elephant insulation products captured up to 80% market share .Mr. Sunchai said the insulation market still has room to grow substantially, boosted by the real estate sales and improving economy plus strong support for energy conservation through global warming current .SFG expected its sales revenue for residential product segment to grow to a record high by 30-35% this year, in line with overall industry growth — thanks to its accredited eco value products coinciding with the consolidation in a single Tra-Chang under the Stay Cool theme. The country’s building materials industry recorded a contraction of 5-10% due to global financial crisis. The company projected to sell at least 1.5 million square meters this year, thanks to increasing awareness and sense of formal qualification of Stay Cool Elephant insulations to help reduce the rate of heat transfer and save money on air conditioning costs by 47%.The strong sales were also stemmed from our continuing public relations activities and integrated marketing communications (IMC) towards the group’s environmentally friendly production process over the past three years, as well as stronger integrated distribution channel management, Mr. Sunchai added. SFG continues to encourage public awareness over the energy conservation to stride the market forward in 2011. The company will focus on providing “total solution” through its core distribution channel Home Mart to become a home solution and roofing centre to create contact point and provide customer experience nationwide. The firm will also apply IMC strategy together with “Single Elephant Brand” concept to promote the Green Building segment. The Elephant insulations was Thailand’s sole “green label” brand using recycle raw materials such as a 100% of crushed glass as a substitute for sand. The company is also a member of US-based LEED. We presented our sale in the total solution approach from design, calculation on energy saving costs, installation, after sales services and consultants on designing energy-saving buildings be certified by the LEED.
SFG, through Cement Thai Inter Trading (SCT) — the overseas marketing arm, will take charge for marketing and customer services overseas. The company is primarily now serving businesses in Indonesia, Malaysia, Singapore and Australia. SFG’s products have gained wide acceptance as local-made quality standard among customers in Australia. The company has been certified by the Australian state agencies such as Australian Standard. The company is applying for a green label for using recycled materials. SFG is the Asia’ sole insulation producer using 100% crushed glass to substitute sand to reduce greenhouse gas emissions by 70%, compared with using sand.
SFG planned to spend 30-35 million baht on marketing promotion in 2011 through radio advertising in Bangkok and major cities in provinces, television and road show activities. The company will broaden its distribution channels to reach more target customers in regional markets. In alliance with SCG’s building product group, SFG planned to hold exhibition featuring roofing center, ceiling & wall solution and home solution. The company will also provide consultants and installation services. Mr Sunchai said the company expected to expand the total solution services into the regions. SFG is now providing consulting services to solve the problem of uncomfortably hot houses via the Call Center at 02-586-2224. The company also offers installation services by specialists in Bangkok and Vicinity. Homeowners can place order for Elephant insulations at Cement Thai Home Mart, Home Pro, Home Work and leading construction shops, said Mr Sunchai.
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SFG grouped products into 4 segments; residential insulations with a 45% market share, acoustic insulations 15%, insulations for large construction projects (roof and conditioning insulations) with 30% share, insulations for other industries 10%. For domestic market, sales of residential insulations accounted for 45-50% and acoustics 10-15%, with the remaining for industrial factories and conditioning work systems.
Apart from the high growth of Elephant insulations, SFG could help reduce the amount of garbage it produced in the country in a number of ways:
1. Reduce the number of crushed glass bottles more than 35 million annually, equivalent to a 320-ml one-way Soda bottle weighed 210 grammes each.
2. Reduce the amount of crushed mirror, or 90,000 house mirror windows yearly with a piece of 6mm glass sized 80cm x 100cm.
3. Reduce the use of natural materials sand over 9,700 tons per year.
4. Use recycled contents as raw materials over 80% of total materials for production.
5. Reduce the melting temperature of glasses from 1,400 to 1,200 C, equivalent to 350,000 litters of fuel oils, resulting in a reduction of carbon dioxide over 800 tons per year.