Thailand’s cement major SCCC taps JV route to expand to Cambodia

Visual from SCCC website.

The board of directors of Thailand-based Siam City Cement (SCCC) has approved a plan to set up a joint venture with Chip Mong Group to operate a cement plant in Cambodia.

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.

Related stories:

Thailand dealbook: Indorama Ventures, Siam City Cement

Also read:

Philippines: San Miguel plans $1b investment in cement biz, to build five new plants

Holcim Indonesia begins operation of $800m new cement plant

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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