Displaying items by tag: Siam Cement

Myanmar: Siam Cement Group (SCG) has announced that it will build a 1.8Mt/yr greenfield cement plant costing US$386m in Mawlamyine, Myanmar. The plant will include a 40MW captive power plant, a 9MW waste heat recovery system, supporting port facilities and other infrastructures for future expansion.

"The Myanmar cement market is estimated at approximately 4Mt in the 2012 financial year and is forecasted to grow at 10%/yr over the next five years," said president and CEO of SCG, Kan Trakulhoon.

Built under Myanmar's Foreign Investment Law, the cement plant is expected to start in mid-2016.

Thailand: Siam Cement Group (SCG) has reported that its revenue rose by 10.5% year-on-year to US$412m for the three months ending on 30 June 2013 from US$373m. Net profit for the period rose by 10.3% to US$369m from US$334m.

Chief executive officer Kan Trakulhoon said that SCG will acquire a company that makes roofing products in Cambodia, Laos, Vietnam and the Philippines, extending a strategy of expansion in Southeast Asia to access rising incomes in countries neighbouring Thailand.

Indonesia: Thai cement giant Siam Cement Group (SCG) will further expand its presence in Indonesia by building a new cement plant and acquiring more companies in the country, according to a company executive.

Chief finance officer Chaovalit Ekabut said that SCG expected to start the construction of a greenfield cement plant in Sukabumi, West Java with a total investment of US$356m."We expect to start construction this year and finish by 2015. We hope to commence operations at this cement plant in the second half of 2015," Chaovalit said on 27 February 2013.The cement plant will have a production capacity of 1.8Mt/yr.

Chaovalit added that SCG had decided to be careful and make small-scale investments in the cement market in Indonesia, which has grown rapidly on the back of increased housing demand and infrastructure projects.

"Some projections calculate that cement capacity (in Indonesia) may reach 100Mt/yr in another five to six years. This is very dangerous because you face a kind of bubble. When the demand seems to be very high, people build more and more plants and then everything stops and you end up having so much extra capacity," Chaovalit said."I hope we shall not fall into the same trap again. Companies should look at the market and continue to invest to serve the demand and not to overexploit something that is not real."

Thailand: Siam Cement has reported that it has more than doubled its quarterly net profit as Thailand rebuilt from floods and demand for construction materials and petrochemicals surged. Southeast Asia's second biggest cement maker posted a net profit of US$232m in the October 2012 to December 2012 period, a rise of 116% compared to US$107m in the same period in 2011. Revenue from sales rose by 14% to US$3.35bn.

"An increase of 116% year-on-year was largely due to the sales recovery of the construction-related businesses from floods in the fourth quarter of 2011," the company said in a statement.

Year-on-year increases in revenue and sales were more modest when compared to the previous quarter in 2012. Revenue fell by 4% compared to the July 2012 to September 2012 period and profit increased by 8%. Revenue for the company's cement sector rose by 36% to US$576m in the fourth quarter of 2012. Profit rose by 75% to US$71.1m.

In its statement Siam Cement reported that its export market sales volume dropped by 30% quarter-on-quarter to 1Mt due to seasonal factors and tight supply as a result of plant maintenance. On year-on-year basis, export volume decreased by 22% as a result of the conversion of exports volume to serve the domestic market. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 42% year-on-year due to the better domestic cement market but decreased by 12% quarter-on-quarter to US$117m due to plant maintenance and higher electricity costs.

Siam Cement is Southeast Asia's second largest cement maker with a cement production capacity of 24.2Mt/yr. It is 30% owned by the Thai Royal family's investment arm, the Crown Property Bureau. The company said future profit growth would be partly driven by construction across the developing Southeast Asian nations, where it aims to invest $6.7bn between 2013 and 2017.

Myanmar: Siam Cement Group (SCG), Thailand's largest cement company, has announced that it will build a plant in 2013 in Myanmar's Taninthayi region, according to country manager Soontornpol Veerapravati.

"SCG is planning to manufacture its main products in Myanmar and will open four retail stores in Yangon, Mandalay, Nay Pyi Taw and one other major city. It will also expand its outlets in other locations," said Soontornpol.

Cement is currently in short supply in Myanmar although the government is granting more permits for build cement plants. SCG exports at least 22Mt/yr to neighbouring countries, including Myanmar.

Thailand: Siam Cement's third-quarter net profit has fallen by 13% to US$201m from US$240m. The conglomerate blamed higher expenses and the cost of sales.

For the quarter ending on 30 September 2012, sales increased by 11% to US$3.39bn from US$3.01bn. The cost of sales rose by 9.1% to US$2.89bn from US$2.65bn. Total expenses grew by 15% to US$305m from US$266m. Contributions from the cement unit rose by 33% to US$2.45bn.

Despite the profit decline, the conglomerate said that its board had approved plans to spend US$358m on a new cement plant in Indonesia and US$179m on an expansion of its cement business in Cambodia. Siam Cement has aggressively expanded its business in local and overseas markets over the past few years, particularly in members of the Association of Southeast Asian Nations, as it seeks to boost future income and diversify risk across markets.

Indonesia: Chinese producers are expected to increase their capacity in Indonesia to 65Mt/yr from 60.56Mt/yr, according to an Indonesian industry official.

"Production will increase by 7% because the capacity of the factories will be ramped up and there will be additional investment in the cement business as well," said Director General for Basic Manufacturing Industry, Panggah Susanto. The plans for investment have been approved by the Capital Investment Coordinating Board (BKPM).

Chinese producer Anhui Conch Cement Co Ltd has said that it will will build a 10Mt/yr plant in either South Kalimantan, East Kalimantan, West Kalimantan or West Papua.

China Trio Bit Engineering Co Ltd will build a 1.5Mt/yr plant in Subang, West Java. Another Chinese firm, State Development and Investment Corperation (SDIC), will build a 1.8Mt/yr plant in Papua. In addition, Siam Cement, the largest cement producer in Thailand, has also expressed interest in building a 1.8Mt.yr plant in West Java.

Indonesia: Thailand's Siam Cement Group (SCG) has revealed plans to build a new cement plant in Indonesia to capitalise on the country's rapidly-growing demand for construction materials. Kan Trakulhoon, president and chief executive officer of SCG, said that the company would invest US$300m in a cement plant in Sukabumi, West Java. The plant will have a capacity of 5000t/day and construction is expected to start by the end of 2012.

The investment comes after SCG bought a 100% stake valued at US$135m in Boral Indonesia, a company that produces ready-mixed concrete, from Australia-based Boral in February 2012. Kan said that SCG's growth lies outside of Thailand and that Indonesia is a big part of that.

The SCG chief, who has previously lived and worked in the Indonesian capital Jakarta, said that he had been impressed with Indonesia's improvement during the past few years. "During the last four to five years, the growth was very good. SCG has a lot of confidence in Indonesia," he said. Kan said he that he was not afraid of competition with Indonesia's more established cement makers as SCG had already acquired supporting companies such as Kokoh Inti Arebama, an Indonesian construction-material distributor.

Semen Gresik, Indonesia's largest cement producer, and other cement makers plan to invest a total of US$6.27bn during the next three years to boost production. The investment is expected to produce an additional 30Mt/yr of cement in the country, with annual output reaching 90Mt/yr in 2017 from 52Mt in 2011. Chaovalit Ekabut, SCG's chief financial officer, added that demand for SCG's products remained high in Indonesia.

Looking ahead, Kan said that in the next five years, the company would invest US$5bn in its ASEAN-country operations. In 2012 it will spend US$1.3-1.5bn in various regional investments, but Kan did not disclose how much the company has set aside for Indonesia.

Thailand: The Thai cement industry is still waiting to see more details of the government's programme for infrastructure projects following the recent devastating floods. It is anxious to determine whether growth will exceed the normal annual rate of 3-5%. The government so far has not laid out clear plans on repairing the flood damage to roads and other infrastructure installations or for how it intends to bolster the Kingdom's disaster-protection system with floodways and/or drainage tunnels.

Kan Trakulhoon, president and chief executive officer of Siam Cement Group, said that demand for the cement in 2012 was now anticipated to grow by 5%. This rate is expected to continue for several years thanks to the demand for repairs to roads, houses and other buildings, as well as improving the flood-protection system and constructing new homes. However, it has to wait for an outline of new infrastructure projects from the government before making a clear forecast of cement demand in 2012 and the medium-term.

Trakulhoon said that sales of building materials had bright growth prospects after the flood water recedes. "Because of the floods, the demand for high-rise condominiums in central Bangkok will be higher. I have always believed that the number of high-rise residences such as condominiums has not reached saturation. I have an optimistic view that demand for cement will keep growing."

Trakulhoon also pointed to the overall improved sales of building materials and cement in October 2011 as evidence for his optimism. In that month, sales of cement in the centre of Thailand dropped by 40% but sales in the north, south and northeast were good, indicating a strong background of cement growth.

Chantana Sukhumanont, executive vice president of Siam City Cement, the country's second-largest cement producer, pointed out that restoration itself does not require particularly large amounts of cement. She said that cement consumption in 2012 would not grow significantly from building restoration, highlighting a greater need for fittings and finishings such as plumbing fixtures and electrical wiring.

Thailand: The Siam Cement Group (SGC) has said that Thailand's economy is expected to recover rapidly from the current flooding thanks to anticipated massive spending on infrastructure development. It believes that this development will boost the country's competitiveness in the coming Asean Economic Community (AEC).

Speaking at the Asean Business and Investment Summit in Bali, Indonesia, Kan Trakulhoon, chief executive and president of SGC, said that as soon as the floodwater recedes, much of the country's logistical infrastructure will be repaired. He said that new infrastructure would also be developed, particularly water-management systems. The proposed infrastructure development is meant to prevent flooding but could also spur growth.

"A decade ago we developed very few infrastructure projects such as electric trains and an airport. Now it is time to turn crisis into opportunity and kick off more projects. The infrastructure will enhance the country's competitiveness in the long run," said Kan. He added that Thailand still had much potential for direct foreign investment because of its skilled workforce, research and development spending and its location within the Asean region.

"Signs of recovery are emerging such as sales of building materials and cement in November 2011 returning to normal, following a 40% contraction in October 2011," he said. Kan said that SCG remained committed to its USD5bn five-year investment plan for 2012-16 in all of its business sectors despite the flooding.

The recent floods have affected more than 2 million people in central Thailand and disrupted supply chains for many business and manufacturing sectors.