Prolonged Conflict in Ukraine Could Impact Construction Costs

[snoop1130]

 

BANGKOK (NNT) - The Siam Cement Pcl or Siam Cement Group (SCG) has indicated that prolonged armed conflict between Russia and Ukraine will likely affect costs in the construction sector.

 

Nithi Patarachoke, chairman of SCG’s board of directors, said the largest and oldest cement and building material company in Thailand and Southeast Asia has been closely following the war in Ukraine. He specifically identified rising fuel prices triggered by the war as the main factor driving up the costs of construction materials.

 

The chairman stressed, however, that SCG is exploring cost-cutting measures, such as solar energy, to minimize its dependency on petroleum.

 

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Nithi also said the firm will keep a close watch on how much the war impacts energy costs, which has been a major concern for both developers and consumers.

 

The chairman added that SCG will determine at a later date whether or not it will request administration approval for price hikes on certain items.

 

Nithi noted that cost-push inflation triggered by the Black Sea conflict is extending the recovery period for the construction sector. He further concluded that if the situation continues, price hikes would be inevitable.

 

-- © Copyright NNT 2022-04-06

 

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[CartagenaWarlock]

Thailand, being a year round sunny country, should be in the forefront of solar energy. They should be producing 50% electric energy need from solar. 

[Soikhaonoiken]

Blame the Ukraine war yet again....

[Kinnock]

If you're going to take a cold business view of a humanitarian crisis, why not factor in the prospects for major reconstruction projects after the war?

 

Although with the Thai Military Governments historical track record of choosing the wrong side in world wars, they may be excluded from the post war infrastructure tenders.

[hotchilli]

12 hours ago, snoop1130 said:

Asia has been closely following the war in Ukraine. He specifically identified rising fuel prices triggered by the war as the main factor driving up the costs of construction materials.

I thought oil prices were starting to fall?

[jacko45k]

And yet another commentary on how the war in Ukraine will impact poor old Thailand negatively. It might be nice to see reports of aid packages being sent to that area from Thailand. 

[Srikcir]

This war seems to have many unexpected supply issues.

Russia buys a substantial portion of fighter jet engines and tank components made in Ukraine. Not now.

 

[Stargeezr]

Russia destroyed the worlds largest airplane, in Ukraine. as well as the rest of the destruction and deaths

so far. I have heard that the war could last a fairly long time, but I hope it is over soon..