Siam Cement outlines Southeast Asian expansion plans
Thailand’s Siam Cement Group has outlined further details of plans to expand its cement presence in Southeast Asia.
According to reports in The Nation, the group is to invest THB11bn to set up a cement plant in West Java, Indonesia with a capacity of 1.8Mta which is scheduled to commence operations in 2015.
The board has also approved a THB5.5bn (US$357m) investment to increase capacity of the group’s Kampot Cement plant in Cambodia by about 0.9Mta, with the additional output expected to come on-stream by 2015. Current capacity at the plant is 1Mta.
Kan said the combined investment in Indonesia and Cambodia would meet rising demand in those markets, which is expected to increase by between five and 10 per cent per year over the next decade.
Meanwhile, SCG Group has submitted plans for a cement plant and logistics system in Myanmar, together worth about THB11bn. The manufacturing side of the project is for the production of 1.8Mta. The plans will be submitted to the group's board once they have been approved by the Myanmar government.
"For our investment direction in ASEAN, we will focus on setting up our own plants, plus acquisitions or mergers, which will reduce the proportion of exports from our facilities in Thailand," Kan said.
"Having had the chance to meet with leading business people and CEOs at the Asean Business Council recently in Bangkok, we are convinced about the great growth potential in other Asean countries, especially Indonesia and Myanmar. Bangkok will be the centre used by the group in connecting with our businesses in other countries within the region."
