SET-listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, is set to expand investment in logistics and service businesses to serve the Eastern Economic Corridor (EEC).
The investments will meet growing demand in the market, notably corporations in key industries such as waste management, cement, chemical products and building materials located both in Thailand and other Asean countries.
Mr Roongrote says the emphasis is Asean. Tawatchai Kemgumnerd
Roongrote Rangsiyopash, president and chief executive of SCG, said the company is focusing more on logistics and service solutions, given the promising opportunities in these segments.
Mr Roongrote said government investment projects, especially in the EEC, will spur growth in the logistics industry and in SCG Logistics, its subsidiary.
SCG reports annual revenue of some 17 billion baht from logistics and services.
He said the company places high emphasis on Asean because it is a huge market with a large population, and has strong and growing economies. Asean GDP growth averages 5.0-5.5%.
SCG has planned to invest some 42 billion baht in the region, accounting for 70% of the group's total investment budget that is set at 60 billion for this year. The remaining 30% of the investment fund will be allocated in Thailand, said Mr Roongrote.
The investment amount rose from 46 billion baht set for 2018.
He said a large portion of the overseas investment budget, some 30 billion baht, is allocated to Vietnam-based Long Son Refinery Petrochemical Complex (LSP). The investment is part of the SCG Group's injection of US$5.4 billion (169 billion baht) in Vietnam's petrochemical complex.
The group expects revenue from overseas markets will increase to 60% of the total in the near future from 45-55% thanks to the petrochemical complex in Vietnam that is scheduled to be completed in 2023.
SCG announced revenue from Asean locations last year at 118 billion baht, with other regions at 86 billion.
The group is completing a feasibility study for investment in the government's bioeconomy and circular economy, outlining them as two future businesses.
This year SCG forecasts revenue will rise by 5% from 478 billion baht last year thanks to the recovering global economy, government infrastructure investment projects and expansion into overseas markets.