Siam Cement to build factory in Laos
Siam Cement Group (SCG) plans to invest 10 billion baht (US$309 million) in the construction of its first cement factory in Laos, the Thai conglomerate announced yesterday.
The plant, to be built in Khammouane province, will have an annual production capacity of 1.8 million tons of cement and serve markets in the Greater Mekong Subregion. Operations are expected to begin in 2017.
“Demand for building materials in the region has continued to grow, especially in Laos, Cambodia and Myanmar,” said SCG president and chief executive Kan Trakulhoon. “This cement plant will mainly serve demand in Laos and the Northeastern region of Thailand.”
The company estimates the size of the Lao cement market to be 2.8 million tons in 2014, with expected growth of 5 to 10 percent over the next ten years. Revenue from sales in ASEAN markets outside Thailand accounted for 9 per cent of SCG’s first quarter total sales revenue.