Siam Cement Plc (SCG), Thailand's top industrial conglomerate, is moving ahead with its 12.4-billion-baht plan to build a cement plant in Myanmar to strengthen its leading position in Southeast Asia.
President and chief executive Kan Trakulhoon said SCG's board of directors had approved the plan to develop its first fully integrated cement plant under Myanmar's Foreign Investment Law.
With annual capacity of 1.8 million tonnes, the plant will be strategically located in southern Myanmar in Mawlamyine, where there is a long-term supply of limestone complemented by water access to Yangon, the country's primary commercial hub.
The facility is expected to start up by mid-2016 to serve growing cement demand in Myanmar. With consumption of about 4 million tonnes last year, the market is anticipated to grow by 10% per annum over the next five years, Mr Kan said.
Last year, SCG exported about 1.7 million tonnes of cement to Myanmar.
This project is SCG's major investment to support the growth of cement business in Myanmar and Asean following recent announcements that it will develop cement plants in Indonesia and Cambodia.
"It is in accordance with the company's strategy to become an Asean sustainable business leader," Mr Kan said.
The Myanmar plant will also be equipped with a 40-megawatt power plant for internal power consumption, a 9-MW waste heat generator for reducing electrical use, port facilities and other basic 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," Mr Kan said.
Shares of Siam Cement (SCC) closed yesterday on the SET at 410 baht, down four baht, in trade worth 972 million baht.
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