Thai fiber cement maker to put up plant in Phl

MANILA, Philippines - Thai fiber cement products maker Mahaphant Group plans to spend $20 million to set up a manufacturing plant in the Philippines.

Mahaphant Group vice president for marketing Veerasak Kittinanthakool said in a briefing yesterday the group is currently undertaking a study for its planned manufacturing operations here.

“We are in the final step to justify the investment for a local facility with expected cost of $20 million,” he said.

The study, which would provide the location as well as other details of the planned facility, is expected to be completed within the year.

Kittinanthakool said the plan is to get the plant which would have an initial capacity of 10 square meter board of fiber cement products per year, operational by 2017.

While the plant would initially focus on the production of fiber cement board and wood substitute, he said the aim is to also manufacture fiber roof materials and other home solutions in the future.

The Philippine plant would not only service the local market but also export to neighboring countries.

While the study for the planned manufacturing facility has yet to be completed, the group is in the process of setting up its local office which is expected to open in the middle of the year.

The group is building a manufacturing facility in the country as it sees growing demand for its products amid the positive economic conditions here.

 â€œWe are very confident in the Philippine economy especially in the housing and construction sector,” Kittinanthakool said.

Mahaphant Group president Sarat Khiatbanlue said establishing local manufacturing operations in the Philippines is in line with the group’s goal of becoming a market leader in the Southeast Asian region.

“The company sees a big opportunity in ASEAN (Association of Southeast Asian Nations) with an estimated $5 billion market potential and targets to be the market leader in ASEAN,” he said.

Apart from the Philippines, he said the group also plans to start manufacturing products in Indonesia.

“The Philippines and Indonesia, among others are top priorities due to their growing economy, population size, similar climates as well as market familiarity with our products,” Khiatbanlue said.

The group, which was established in 1974, exports its products under the SHERA brand to more than 40 countries in the ASEAN, South Asia, Middle East, Africa, Oceania and Europe from its three manufacturing factories in Thailand.

In the Philippines, the Mahaphant Group started selling its products in 2008.

The group’s sales in the Philippine market reached $10 million last year.

 â€œIn the first quarter, we see it increasing about 30 percent quarter-on-quarter. We hope that at the end of the year, the positive trend will continue,” Kittinanthakool said.