Siam City Cement shelves Cambodia plant plans

Thailand-based Siam City Cement (SCCC) has put its plans for a 1Mta cement plant in Cambodia on hold while it concentrates on meeting domestic market needs.

Managing director of SCCC, Philippe Arto, told the Bangkok Post that the company's board has decided to put its plans for the US$150m Cambodia facility “on the shelf” after finishing a feasibility study. Construction had been expected to start at the end of this year.  Mr Arto added that: “The board decided that the project is not a priority while we have many things to do in Thailand." 

In October, SCCC will relaunch one of two kiln lines that have been idle over the past five years. It also considering restarting the other kiln line at a future date to meet local needs. In the first six months of this year, Thai consumption rose by 10 per cent but the rate of growth is expected to slow in the second half. The commercial sector is expected to be weaker however infrastructure projects are anticipated to drive demand. Overall, a 6-8 per cent increase in consumption is expected for 2013, down from the 12 per cent growth achieved last year on the back of post-flood related activity.

Meanwhile, SCCC is also mulling the possibility of expanding into neighbouring Mynamar where domestic peer Siam Cement earlier this week confirmed plans to construct a new plant. "However, there is no timeline on the horizon for the Myanmar project," said Mr Arto.