Thursday, March 28, 2024

Fiber cement exports: how to crack the market?

Fiber cement is a new type of building material whose popularity has been growing over the past five years.

Fiber cement is wood substitute made from portland cement mixed with natural fibers and other ingredients. It is light, durable, non-flammable, resistant to water and insects, and costs roughly the same as actual wood.

Because of its superior properties it has become the replacement product of choice in many different contexts, including flooring, siding, roofing and as ceiling boards.

Highlight

  • The growth of the Thai fiber cement market is currently driven by exports, which rose at the rate of 16% CAGR between 2011-2015. The expansion can be attributed to rising demand thanks to recovering economic conditions in major export markets, such as the Philippines and CLMV countries.
  • Businesses should prioritize sales and management of distribution channels in the Philippines, Myanmar, Vietnam, and Cambodia, as these markets rely largely on Thai exports, with import demand projected to rise further.
  • In addition, manufacturers may also consider trying to open up the markets in Taiwan and South Korea. With high import values overall but minimal Thai imports, the two markets present the Thai fiber cement industry with new opportunities.

 

Currently there are six major players in Thailand, with a combined manufacturing capacity of 2.2 million cubic meters and a market value totaling THB 14.5 billion, or 20% of the cement market’s total value. Between 2011-2015 the fiber cement market grew 2% CAGR. SHERA and SCG are the two market leaders, each sharing 38% of the market, followed by DRT, CONWOOD, ORAN, and TPIPL, respectively (Figure 1)

While domestic sales have shrunk, growth has been driven by exports to the Philippines and CLMV markets.

Domestic…

Read the complete article on Thailand Business News

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