Thailand’s second largest cement producer SCCC will take 40 per cent equity in Chip Mong Cement Corporation Limited, the joint venture firm, and Chip Mong Group and three other individuals will hold the majority 60 per cent.
The JV firm has a registered capital of $150 million, comprising 75,000 ordinary shares at a par value of $2,000 each. It is expected to be in place by December. Once the acquisition is completed, Chip Mong Cement Corp will be renamed to Chip Mong Insee Cement Corp.
They plan to set up a new cement plant in Cambodia with an annual capacity of 1.5 million tonnes, said SCCC’s deputy chief executive officer Siva Mahasandana.
“We trust that this is an absolutely sustainable business venture in Cambodia, and at the same time, we are exploring new investment opportunities in ASEAN, especially in Cambodia, Laos, Myanmar and Vietnam,” he cited.
This is SCCC’s first move to take a full advantage of an inauguration of ASEAN Economic Community.
He added that Cambodia had attracted a lot of foreign investment due to its government’s promotion policies and low labour costs. Also, the economy as well as the construction business has been growing continuously, which is an opportunity for SCCC’s Insee cement brand.