CPANEL aims for a 20% growth in 2024 by improving production systems and opening a second factory, which will make it the highest production capacity facility in the country, reaching 2 million square meters. The company focuses on Green Construction Technology to enhance competitiveness, as the trend shifts towards selling before construction, driving the growth of Precast Concrete despite the downturn in the real estate market.

Mr. Chakrit Tipakornsukasem, Managing Director of CPANEL Public Company Limited, a manufacturer and distributor of Precast Concrete products using Fully Automated Precast systems for real estate construction projects, revealed that in 2024, the company will increase production capacity at its existing factory while opening a second production facility. This will result in a total production capacity of 2 million square meters per year, making CPANEL the highest production capacity factory in Thailand. The company aims for a 20% revenue growth while enhancing operational profitability.

Last year, the company invested in additional machinery for the existing factory, which currently has a production capacity of 790,000 square meters per year, set to increase by 25% to 990,000 square meters. The second factory is currently installing machinery and is expected to be operational commercially by Q1 2024, resulting in a combined production capacity of approximately 2 million square meters per year. However, the second factory will be in a trial phase this year and may not operate at full capacity for the entire year. In 2025, once fully operational, it is expected to significantly boost sales growth.

The production processes at both CPANEL factories are highly efficient in terms of design, speed, volume, and quality, while also reducing errors and production waste. This has been a continuous advantage for the company. The commencement of operations at the second factory will further enhance the ability to manage production and sales costs effectively, with a production process that is 30% faster and requires less labor. Additionally, management and personnel costs in the production process, which previously accounted for 15% of revenue, will decrease to 7%. The increased production capacity will allow for more job opportunities, meeting customer demand more effectively and significantly enhancing the company's Economy of Scale and profitability.

Moreover, the company has received a carbon footprint certification for its products from the Greenhouse Gas Management Organization (Public Organization) or TGO. This year, the company is focusing on a strategy to become a Green Construction Technology leader, continuously reducing carbon in production processes and products. Plans are in place to transition to Renewable Energy and to use carbon-reducing materials.

The certification from TGO also enables CPANEL to provide carbon calculation reports to customers, aiding their purchasing decisions and encouraging real estate developers to adopt more environmentally friendly construction materials. This will enhance competitiveness for customers and expand the customer base into other industries such as hotels, hospitals, office buildings, and industrial estates.

“Overall, the real estate market in 2024 still faces challenges, including household debt and high interest rates. Stricter lending policies have resulted in a decrease in purchasing power for durable goods. Consequently, current construction projects tend to follow a sell-before-build model, prompting developers with ongoing investments to prioritize timely delivery to customers, reducing the risk of holding inventory and labor costs, which are likely to rise. Moreover, it allows for better management of working capital. Precast Concrete meets these needs effectively, presenting an opportunity for the company to secure more contracts. We believe that these supportive factors will drive our performance in 2024 to achieve the planned growth,” Mr. Chakrit stated.