Cambodia: SCG's Kampot Cement to open third plant

Siam Cement Group (SCG), Thailand’s largest cement conglomerate, is to take advantage of Cambodia’s booming construction sector by opening its third cement plant in Battambang province next year through its subsidiary, Kampot Cement.

Governor of Battambang province, Chan Sophal, told a local news source that SCG, a majority shareholder in Kampot Cement, started construction on the cement works last year in Ratanak Mondol district. “So far, they have completed about 60 per cent of the construction [for the third plant],” Mr Sophal said.

He added that construction of the cement factory is expected to be completed at the end of the year and operations are expected to begin in 2018.

Somwang Manpimonchai, the executive in charge of SCG's Cambodian business interests, met with Cham Prasidh, Minister of Industry and Handicrafts, and reportedly disclosed that the new plant will have a capacity of 1.8Mta.

Mr Manpimonchai said the Battambang factory will supply both the local market and export cement to Thailand. He has allegedly asked Mr Prasidh to support the initiative by facilitating the import of raw materials.

Kampot Cement was created in January 2008 as a joint venture between SCG, which owns 90 per cent of the company, and domestic firm Khaou Chuly Group. It initially had a capacity of 1.1Mta.

SCG invested about US$120m in its second factory in 2015 which has a production capacity of 0.9Mta and became operational in 2016.

According to a report from the Land Management, Urban Planning and Construction Ministry, investment capital in the Cambodian construction sector reached about US$8.5bn in 2016, versus US$3.3bn in 2015.