MANILA, Philippines - Fiber cement maker Mahaphant Group plans to set up a manufacturing facility in the Philippines as it expects sales in the country to grow 43 percent next year.
In a press conference yesterday, Veerasak Kittinanthakool, vice president for international business of the Mahaphant Group, said the Thailand-based group wants to achieve $20 million worth of sales in the Philippines next year from sales of around $14 million by the end of this year.
The group is aiming for higher sales in the local market next year as it sees growing demand for its products amid favourable economic conditions in the Philippines.
“Now that the market is growing, we think we can help enhance the market. Even today, (other) local producers (of fiber cement products) cannot meet demand,” Kittinanthakool said.
Last year, the group’s sales in the Philippines reached $10 million.
In line with plans to increase its footprint in the region, Mahaphant Group opened its first Philippine office at Bonifacio Global City in Taguig in May this year.
Earlier this year, the group announced that it is undertaking a study to set up manufacturing operations in Luzon with investments amounting to $20 million, as the country is seen as one of the most attractive markets in the region.
“We see opportunities that is why we want to come here,” Kittinanthakool said.
The preliminary feasibility study for the manufacturing facility to be put up in the country is expected to be completed by the end of the year.
Upon completion of the pre-feasibility study, a team of international consultants will be engaged to conduct a full-scale study for the plan which should be ready by the middle of next year.
The group plans to put up a manufacturing facility which will have an initial capacity of 10 million square meter board of fiber cement products, operational by 2017.
“We are considering the Philippines as one of the strategic supply network so some products will be made here and sent to other countries,” Kittinanthakool said.
Established in 1974 in Bangkok, the Mahaphant Group is targeting to become a market leader for fiber cement construction products in the Southeast Asian region in the next three to five years.
At present, the Mahaphant Group has four manufacturing plants in Thailand for its products under the Shera brand which are sold in more than 40 countries throughout Asia, Middle East, Africa and Europe.