THE NATION
Siam Cement Group yesterday said
it would invest Bt12.4 billion for its first integrated greenfield
cement plant in Myanmar to serve the rising demand in that market.
Kan Trakulhoon, president and chief
executive of SCG, said the board of directors approved the investment to
construct its first fully integrated cement plant in Myanmar under that
country's Foreign Investment Law. Construction is expected to begin by
mid-2016. The cement plant, with annual output capacity of 1.8 million
tonnes, will be strategically located in Mawlamyine, where there is a
long-term supply of limestone complemented by access by boat to Yangon,
Myanmar's primary commercial hub.
The plant will include a 40-megawatt
power plant with the latest clean technology for internal power
consumption, supporting port facilities, and other infrastructure for
future expansion.
"SCG has solidified its position as one
of Myanmar's market leaders in terms of dependable product attributes,
brand exposure, supply-chain efficiency, and depth of distribution
channels," Kan said. "The Myanmar cement market was estimated at
approximately 4 million tonnes in fiscal year 2012, and is forecast to
grow annually at 10 per cent over the next five years."
In fiscal 2012, SCG exported about 1.7 million tonnes of cement to Myanmar.
Kan said this project was a major
investment to support growth of the cement-building-materials business
in Myanmar and elsewhere in ASEAN after recent announcements that it
would construct cement plants in Indonesia and Cambodia. It is in
accordance with the company's strategy to become a sustainable business
leader in Asean.
With a majority stake in the Myanmar
plant, SCG says it places importance on sustainable development. That
includes the 40MW power plant, a 9MW waste-heat generator system for
reduced electrical usage, supporting port facilities, and other basic
infrastructure.
SCG's stock price yesterday closed at Bt410, down by 0.97 per cent from last Friday.
Bualuang Securities yesterday noted in
research that the cement, petrochemicals and building-material
businesses would strengthen SCG's growth in the next few years. The
growth of its cement business will be driven by rising sales revenue
backed by new investment and the increasing demand in Myanmar, Cambodia
and Indonesia.
Bualuang said the two new cement plants
in Indonesia and Cambodia would be able to operate commercially in 2015
and the one in Myanmar in 2016.
For its building-materials business, SCG will focus more on mergers and acquisitions.
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