Siam City Cement Plc (SCCC), Thailand's second-largest cement maker, has shelved its US$150-million cement plant in Cambodia over political uncertainty in the neighbouring country as it looks at a possibility in Myanmar.
Mr Arto said the board decided to shelve its $1.5 million, 1-million-tonne cement plant slated for Cambodia after finishing a feasibility study.
Philippe Arto, managing director of SET-listed SCCC, said the board has decided to "put on the shelf" the plan to build a 1-million-tonne cement plant in Cambodia after finishing a feasibility study.
SCCC, which is 27.5% owned by Switzerland's Holcim Ltd, in late 2010 signed a memorandum of agreement with Cambodia's Chip Mong Group for the study.
"The board decided that the project is not a priority while we have many things to do in Thailand," Mr Arto said yesterday.
Two of SCCC's kilns have been shut down for five years, but one will be reactivated in October and the opening of the other one is in the pipeline.
Under the previous plan, construction of the Cambodian plant was due to start around the end of this year and take two years to complete.
SCCC is looking at the possibility of pushing forward a cement project in Myanmar, where the market is sizeable and the economy is growing substantially.
"However, there is no timeline on the horizon for the Myanmar project," said Mr Arto.
The cement market in Myanmar is growing by 20% per year, while Cambodia's market has growth of 10%.
In Thailand, cement consumption is expected to grow at a slower rate in the second half of this year than the 10% experienced in the first six months.
"Demand might be weaker from the commercial side, while infrastructure projects are coming up to drive cement consumption in the latter half," Mr Arto said.
Overall domestic cement consumption is estimated to grow by 6-8% this year, down from strong growth of 12% last year on post-flood demand.
SCCC yesterday hosted Insee Supplier Day 2013 in a move to encourage sustainability among its suppliers.
"It took us five years to convince suppliers and show them the benefits of growing green. We will support them with small investments," Mr Arto said.
"Sustainable development is also good for business, not just the environment."
SCCC has implemented several green initiatives such as zero water discharges and zero waste to landfill. About 30% of its sales come from green products and services, with a target to increase the ratio to 40% by 2017.
Shares of SCCC closed yesterday on the SET at 376 baht, down 12 baht, in trade worth 68.8 million baht.