Siam Cement Group (SCG) is consolidating its cement and building materials businesses to strengthen its competitiveness for further regional expansion.
"There is strong synergy among the cement, building materials and distribution businesses, which are related to the construction industry," said Kan Trakulhoon, SCG president and, said in a filing to the Stock Exchange of Thailand.
The company aims to increase its Asean sales from 18 per cent of the total and has budgeted THB40-50bn for regional mergers and acquisitions. Plans include cement plants in Cambodia, Indonesia and Myanmar.
"This business restructuring aims to strengthen operating excellence further, as well as to accelerate the development of products and services to serve customers, and to improve technological advancement," Kan said.
"Furthermore, as SCG expands its operations across the Asean region, this business restructuring will enhance the overall competitiveness over the longer term."
The board of directors on Wednesday approved the organisation-restructuring plan. It will create a single market-facing entity and will be referred to as SCG Cement-Building Materials.
The new business unit will have Kajohndet Sangsuban as the president and vice president for the domestic market, Pichit Maipoom as vice president for operations and Aree Chavalitcheewingul as vice president for regional business.
