Cambodia: Siam Cement Group (SCG) expects to invest US$200-300m of additional investment into Cambodia over the next five years, according to Aree Chavalitcheewingul, vice president for regional business of SCG Cement-Building Materials.
The five-year investment plan includes adding a third production line to its cement plant in Kampot, southern Cambodia, where SCG commenced the second production line in mid 2015. SCG also plans to double its network of ready-mix concrete plants in the country.
The group expects sales from its Cambodian operations to approach US$140m in 2015. Including its exports to Cambodia, which are expected to reach US$200, SCG's Cambodian revenues are targeted to total US$40m for the year. About 80 - 90% of SCG's Cambodian sales are derived from its cement sector.
"The growth is at a satisfactory rate of 5 - 10%," Aree said. "We have seen a lot of opportunities, especially this year, as cement demand has increased remarkably. There are many new residential and commercial projects coming up in Phnom Penh." Cambodia's GDP has expanded by about 7%/yr in the past few years.
SCG employs 31 international staff and 461 SCG staff in Cambodia. It is expanding rapidly in the ASEAN markets, with its first cement plant in Indonesia opening in the third quarter of 2015. It will start its first cement plant in Myanmar in 2016 and SCG will start a plant in Laos in 2017.
