HIGH DEMAND FOR CLEAN COAL BUOYS SCT

       SCT, the international trading arm of Siam Cement Group, Thailand's largest industrial conglomerate, expects revenue from its coal business this year to be almost the same as last year, at Bt10 billion, because major customers have slowed their orders.
       However, its profit this year is expected to be higher than last year due to the high margin from small customers. The number of small clients this year has increased by 30 per cent from last year.
       Kalin Sarasin, managing director of SCT, said that small customers who are in the food and cloth-dye industries want quality coal because they are concerned over the environment, adding that clean coal helps manufacturers deal with their communities.
       "Our steam coal has high quality, and the increase in small clients should offset the declining volume from major clients. Moreover, the price of coal sold to the Philippines, Cambodia and Vietnam is not down by much," he said.
       Kalin said SCT's sales volume this year might be 3 million tones, down from 3.5 million last year.
       He added that the recovery of the global economy would drive the company's sales volume and revenue by 40 per cent to 50 per cent next year.
       Steam coal accounts for 20 per cent of SCT's business.
       Its major clients are in the domestic market, representing 90 per cent, with 10 per cent in overseas markets. But the company plans to increase overseas revenue in the future, with exports to get closer to domestic sales.
       The company plans to invest around Bt120 million to set up four steam coal hubs, including screening coal plants in Vietnam, China, Malaysia and the Philippines to serve the demand of industries there.
       The coal hubs will be completed in the third quarter of next year, he said. SCT has two existing coal hubs in Thailand, at Ayutthaya and Samut Sakhon, and three in Vietnam, the Philippines and Cambodia.
       The company will next year sign long-term international coal-purchasing contracts with international firms to assure a healthy coal stockpile in preparation for the recovery of the global economy.
       In addition, Kalin said that a pilot project of coal-water mixture (CWM) - a mixture of pulverised coal and water with a very small quantity of additive chemical - would start commercial trading next year.
       CWM is an alternative to heavy fuel oil for use in boilers in manufacturing plants. SCT can produce 50,000 litres of the material annually.
       Kalin said the company would consider expanding production size when global oil prices rise above US$70 (Bt2,352) a barrel, as this would persuade manufacturers to use the coal mixture, which would cost 20-per-cent less than fuel oil.
       Kalin added that the company was also importing bio-mass from Singapore, another alternative fuel favoured by both domestic and international small clients.