Logo of Phnom Penh Post newspaper Phnom Penh Post - Kampot Cement sees sales drop one-third up to May

Kampot Cement sees sales drop one-third up to May

Kampot Cement sees sales drop one-third up to May

090701_14a.jpg
090701_14a.jpg

Cambodia’s largest cement maker cites worldwide economic crisis and

lower prices from overseas competitors as main reason for recent sales slump

Photo by: HENG CHIVOAN

Workers operate machinery last week at the Kampot Cement factory in Kampot. The Kingdom’s largest cement maker has seen sales drop by almost one-third this year until May.

KAMPOT

SALES volumes at the Kingdom's largest cement producer fell by almost a third in the first five months of 2009, as the construction slump continues to hurt demand within the industry.

Praksosery Wathana, the head of business correspondence at Kampot Cement, said the drop had hit all producers, and admitted the firm was unlikely to meet its sales target of 3 million tonnes by the end of the year.

He said Kampot Cement has cut production in response to lower sales. The firm produced 1 million tonnes of cement in 2008.

"This is affecting not only my company but other cement companies, too, and that's why we've cut production to avoid oversupply," he said.

"We are already competing very hard with imported cement sold at a cheaper price."

He said that despite the cuts, Kampot Cement would not lay off any of its 300 workers.

Kampot Cement was set up in January 2008 in a joint venture with Thailand's largest industrial conglomerate, Siam Cement Group, which owns 90 percent of the company. The remainder is owned by local firm Khaou Chuly Group.

"We don't want to cut production - so to deal with the current downturn we need to cut operating expenses," he said, adding that planned cuts did not include staff.

Mary Kann, the director of Land Gold Cambodia, a construction company, said that since construction costs have dropped by a fifth since December 2008, a number of smaller buildings and office spaces were being built.

"Our construction sector has not been very severely impacted - it is still good," she said. "But it is not too big as it was before."

A leading property expert, Sung Bonna, who is the head of Bonna Realty Group and president of the National Valuers' Association, said activity in the construction sector has increased slightly since May, but the rise is due to offices and houses rather than development projects.

Falling demand

Khaou Phallaboth, the president of Khaou Chuly Group, told the Post late last year that the depressed construction market would need 3 million tonnes of cement annually worth US$270 million.

However, he said that when the market recovered, demand would be twice that.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the