Siam Cement Group (SCG) has announced an investment of 3.19 billion baht aimed at boosting revenue from high-value-added (HVA) products and expanding retail business in Asean in a bid to bolster its presence in the region.
Kan: SCG to become an Asean leader
Kan Trakulhoon, president and chief executive of SET-listed Siam Cement Plc (SCC), said the group had a clear direction for the new investment to focus on the development of HVA products.
The 3.19 billion baht will be used to boost the capacity of HVA mortar plant production and construction-related retail businesses in Asean as well as for research and development (R&D) activities.
Mr Kan said this reflected the company's vision of becoming an Asean leader in sustainable business.
The group's board has given the green light to the company to move forward with the projects.
"The investment is in accordance with SCG's strategy of becoming an Asean business leader," said Mr Kan.
The new investment covers a mortar cement business with a 2.8-billion-baht investment for further expanding its HVA mortar production to a total of 2 million tonnes in Khon Kaen and Lampang provinces.
The new capacity is scheduled to start in the first quarter of 2016.
HVA mortar is a finishing product used in wall applications and which offers a high-quality consistency, is easy to use and is suitable for lightweight concrete blocks replacing traditional bricks.
Another project is strengthening its retail business in Asean by investing 200 million baht to acquire 50% of Global House International Co, which is expected to be its Asean growth platform in hardware warehouse retailing.
The other 50% will be held by SET-listed Siam Global House Plc.
"We'll tap Siam Global House's expertise as part of our growth strategy in Asean," said Mr Kan.
R&D activities worth 190 million baht will increase its stake to 20% in Lysando AG, a life science-related R&D firm.
This investment is a part of SCG's total R&D budget of 4 billion for this year.
On the domestic front, Mr Kan said the economy was expected to revive rapidly in this year's fourth quarter and next year's first quarter, as the state budget would start to be spent after a long delay due to the political unrest.
The speedy recovery will be aided by the resumption of projects in the fourth quarter through early next year that were put on hold due to the absence of a functioning Board of Investment during the political impasse, he said.
"We've received requests from more than 10 foreign companies to visit our production plant," said Mr Kan.
"This is a good sign. It means Thailand has regained the confidence of foreign investors."
The appointment of a new government is another good sign for the country, as investors will have further confidence in the country, he added.
SCC shares closed yesterday on the SET at 436 baht, down four baht, in trade worth 451 million baht.