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Displaying items by tag: Siam Cement
Siam Cement targets Indonesia for major investment
05 March 2012Indonesia: 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.
Thai industry waits for more on rebuilding plans
12 December 2011Thailand: 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.
Siam Cement boss talks up Thai recovery
18 November 2011Thailand: 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.