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SCCC to take 40% of Cambodia firm

Sep 23. 2015
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By The Nation

Siam City Cement (SCCC)'s board of directors has approved a 40-per-cent share in a joint-venture company in Cambodia, Chip Mong Cement Corporation, a first step in its strategy to take advantage of the upcoming Asean Economic Community.

The joint venture will involve the construction and operation of a cement plant and related business, said Siva Mahasandana, acting SCCC deputy chief executive officer and senior vice president for marketing and sales.

He said the company had signed a definitive agreement with Chip Mong Group and three individuals, known collectively as “CMG”, to form the joint venture, which is expected to be in place by December.

Siva said the joint-venture company’s registered capital would be US$150 million (Bt5.38 billion), comprising 75,000 ordinary shares at a par value of $2,000 each. Once fully established, the new company will be renamed Chip Mong Insee Cement Corp.

Cambodia has been attracting investment with its government measures and low labour costs. Its economy has been growing measurably, and the construction business is expected to grow in parallel, providing opportunities for SCCC’s Insee brand, he said.

The new cement plant in Cambodia will have annual capacity of 1.5 million tonnes.

“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 countries, especially in CLMV,” he said, referring to Cambodia, Laos, Myanmar and Vietnam.

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