MAY KUNMAKARA
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A ready-mixed concrete plant of Siam Cement in Nonthaburi province, on the outskirts of Bangkok. Reuters |
Siam Cement Group (SCG), Thailand’s largest conglomerate, is tapping into Cambodia’s booming construction sector and opening its third cement plant in Battambang province next year.
Governor of Battambang province Chan Sophal told Khmer Times that SCG, a majority shareholder in Kampot Cement, started construction on the cement factory last year in Ratanak Mondol district and is almost finished.
“So far, they have completed about 60 percent of the construction [for the third plant]. It’s a good investment because they invested a lot of money and have strategic partners, so it will not be long before they finish construction,” he said.
Mr. Sophal added that construction of the cement factory is due to be completed at the end of the year and operations would begin in 2018.
“This is part of our investment plan for the province as it will be part of the history of my province to have a cement-producing factory here,” he said.
“At the same time, it is also good for the image of my province. We can attract big investors here so they can create more jobs and attract other investors.”
Somwang Manpimonchai, the executive in charge of SCG's Cambodian business interests, met with Minister of Industry and Handicrafts Cham Prasidh on Tuesday and said the new plant will produce 1.8 million metric tons of cement a year.
Mr. Manpimonchai said the Battambang factory will supply both the local market and export cement to Thailand. He has already asked Mr. Prasidh to support the initiative by facilitating the import of raw materials needed to create enough cement to supply Cambodia's burgeoning construction industry.
Mr. Prasidh said SCG was only one of the many companies investing in cement production and the demand for more cement was bolstered by a variety of skyscrapers, bridges and dams slated for construction.
Kampot Cement was created in January 2008 as a joint venture between SCG, which owns 90 percent of the company, and domestic firm Khaou Chuly Group. They initially were able to produce about 1.1 million metric tons of cement annually.
SCG invested about $120 million in a second factory in 2015 which has an annual production capacity of 900,000 metric tons and began operations last year.
Roongrote Rangsiyopash, president and CEO of SCG, said in a report that the Asean market was still the main focus for the company and that they planned to invest in the region further through a diverse array of products. “In Asean, we continue to implement strategies coupled with solidifying the SCG brand. SCG believes that this market holds high prospects with dynamic growth from the government’s investment policies as well as domestic consumption and trade among Asean countries,” he said.
SCG’s Cambodian revenues are targeted to be over $40 million a year, according to industry insiders.
Demand for cement has risen to an estimated four million metric tons a year. Kampot Cement currently has a capacity for the production of two million metric tons a year.
According to a report from the Land Management, Urban Planning and Construction Ministry, investment capital in the construction sector has reached about $8.5 billion this year compared with $3.3 billion in 2015.
From 2000 to 2016, foreign financers invested in 791 projects over five stories tall and 134 borey constructions equaling more than 13 million square meters. Most of the projects involve large commercial buildings, office buildings, shopping malls, condominiums, apartments and factories.
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