Tue 27 Aug 2013
Filed under: Business / Trade,News,On The Border
Siam Cement Group (SCG) on Monday confirmed that it will proceed with plans to build a cement plant in Moulmein which it expects to open in mid-2016.
In a statement on its website, Thailand’s largest conglomerate said it will invest 12,400 million baht (US$413 million) in a facility that will include a 40 megawatt power plant with the latest in “clean” technology for internal power consumption, as well as supporting port facilities and other infrastructure.
“SCG has solidified [its] position as one of Myanmar’s [Burma’s] market leaders in terms of dependable product attributes, brand exposure, supply chain efficiency, and depth of distribution channels,” said Kan Trakulhoon, SCG president and CEO. “The Myanmar cement market is estimated at approximately 4 million tons in FY2012, and is forecasted to grow annually at 10 percent over the next 5 years.”
The Moulmein plant, when fully operational, will be SCG’s largest foreign investment, and comes soon after announcements that it will construct cement plants in Indonesia and Cambodia.
Mr Kan said the move is “in accordance with the company’s strategy to become an ASEAN sustainable business leader.”
In December, SCG originally announced it intended to construct a factory in Tenasserim division with a view to opening retail stores in Rangoon, Mandalay, Naypyidaw and “one other city”. It noted that cement is currently in short supply in Burma with only 15 cement factories throughout the country.
Situated in Mon state some 300 km east of Rangoon by road, Moulmein offers SCG a long-term supply of limestone and is complemented by shipping access to Rangoon.