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Top cement companies spreading their wings

Somluck Srimalee

The Nation

SCG, SCCC make major investments to become key players in Asean community

BANGKOK: -- Giant construction-material manufacturers Siam Cement Group (SCG) and Siam City Cement (SCCC) yesterday announced major expansion plans to become key players in the region under the Asean Economic Community in 2015.

SCG and SCCC separately announced investment plans in the region. SCG will invest Bt4.3 billion or US$135 million to take over construction materials company Boral Indonesia (BI) from Boral Limited, Australia. The transaction is expected to be completed by the end of June 2012. The acquisition is part of SCG's expansion of its core business across Asean.

Siam City Cement will expand cement and wood-replacement products plants in Cambodia, Burma, and Indonesia from this year until 2015.

The company has set aside a budget of at least Bt6.5 billion for expansion of operations, of which Bt1 billion will be spent this year on maintenance of its manufacturing plants in Thailand. Another Bt1 billion will be spent between this year until 2015 to build Conwood Co's manufacturing plant in Indonesia. About Bt4.5 billion or US$150 million will be invested to build a cement plant in Cambodia from this year until 2014.

Conwood Co is a subsidiary of SCCC, which produces wood-replacement products.

Managing director Philippe Arto said the company has been studying increasing its investment in Cambodia since last year and had plans to build its manufacturing plant last year. The delayed project should get off the ground in the next six months. The construction is expected to take about a year and half with production supporting the demand in Cambodia in 2014. The business is a joint venture with a Cambodian partner.

The company also sees the potential to expand its investment in Burma because of the opportunities. Currently, local cement product sales are only half of Thai demand.

"We believe we will expand our business in Burma in the next three or five years," he said.

He added that when the AEC come into effect in 2015, it will be an opportunity to expand investments in Asean.

Meanwhile, the company is continued to focus on value-added products, especially green products, whose sales are targeted to account for 40 per cent of net sales in 2015, he said. Currently, green products have recorded sales of about 25 per cent of total sales in last year.

Mission to become leader

Kan Trakulhoon, president and CEO of SCG, said the group has continued to expand its presence in Asean countries to achieve its mission of becoming a sustainable leader in the region.

He added that Boral Indonesia is the leading producer of ready-mixed concrete with capacity of 2.2 million cubic metres, and operates under the brand "Jayamix" across its 40 plants across Java and Sumatra. Besides ready-mixed concrete, BI possesses other highly valued assets such as concrete pipes, precast concrete operations, strategic quarries, and key limestone reserves for future expansion considerations.

"Indonesia is an attractive market for SCG's cement and building materials businesses, supported by the potential for high growth and ample untapped demand. Earlier in 2011, SCG acquired Kokoh and Kia in Indonesia, which are in the distribution and building materials businesses, respectively," added Kan.

-- The Nation 2012-02-02

[belg]

why not invest more in people instead of taking over and surly making the slave workers slave more for less money, lost of jobs

[bobl]

Apologies if this is off topic, I don't mean to hijack the story - but by coincidence it seems somehow appropriate...

Colleague of mine from South Africa, this morning he messaged me asking about the possibility of combining a vacational trip to LOS with a purchasing trip, buying cement.

All I know is the local cement I've seen here in LOS is significantly cheaper and maybe worth looking into - but I suspect finding SABS certified cement for export, will be a whole other ballgame...

Anybody in the trade with any pointers? PM me if we're treading on toes posting in this thread...