Economy & Market

SE Asia demand for paper packaging to go up in 2015

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Thailand?s Siam Cement PCL (SCC) feels that sales from its paper and packaging business should rise 5-10 per cent this year as higher demand from Southeast Asian countries helps offset slow growth at home. Siam Cement, Southeast Asia?s biggest packaging paper maker, expects domestic demand to rise from just 1 per cent to 2 per cent in 2015 due to weak consumption and poor exports. Siam Cement had sales of $2 billion from paper and packaging business last year, accounting for 15 per cent of total sales. But profit from the paper business slid 30 per cent in January-March compared with the same quarter a year earlier due to weak margin and rising expenses. Siam Cement re-organised its paper business to focus more on packaging operations, which are expected to contribute 80-90 per cent of combined paper-packaging sales over the next five years.

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