BANGKOK, 9 July 2012 – SCG is planning on investing up to 200 billion baht in ASEAN countries within 5 years
Khun Kan Trakulhoon, President and CEO of Siam Cement Group (SCG), has disclosed that the company plans to invest between 150 to 200 billion bath in the next five years, from 2012-2016. The plan will increase the proportion of the company’s foreign investment from 20 % at present to 50%, focusing on investing mainly in the ASEAN member countries; the rest will be invested in the country. He added that Asia has a promising growth after becoming a single market or AEC, which bosts a population of over 600 million people.
The investment will be in the forms of stocks and Merger and Acquisition or M&A rather than Greenfield due to the fact that Greenfield has slower expansion rate.
Mr. Kan also added that the company has to be extremely careful in implementing this plan due to the economic crisis in Europe. However, the investment plan will be cautiously thought through, taking 3 main businesses including petrochemical, cement and construction materials, and paper into consideration.
Reportedly, SCG’ assets in ASEAN are worth 1,800 million US dollars or 54 billion baht, accounting for 14 percent of the total assets worth 12 billion US dollars or 360 billion baht
He went on to say that Myanmar currently has a very high demand for cement, and SCG is considering investing in a cement production plant capable of producing 1.8-1.9 million tons per year in order to meet the demand in Myanmar