Thailand-based Siam City Cement (SCCC) has approved a plan to set up a joint venture with Chip Mong Group to operate a cement plant in Cambodia.

Thailand’s second-largest cement producer SCCC will take 40 per cent equity in Chip Mong Cement Corporation Ltd, the joint venture firm, and Chip Mong Group and three other individuals will hold the majority 60 per cent.

The JV firm has a registered capital of US$150m, comprising 75,000 ordinary shares at a par value of US$2000 each. It is expected to be in place by December. Once the acquisition is completed, Chip Mong Cement Corp will be renamed to Chip Mong Insee Cement Corp.

The plan is to set up a new 1.5Mta cement plant in Cambodia, said SCCC’s deputy chief executive officer Siva Mahasandana.

“We trust that this is an absolutely sustainable business venture in Cambodia, and at the same time, we are exploring new investment opportunities in ASEAN, especially in Cambodia, Laos, Myanmar and Vietnam,” he cited.