Siam Cement may review revenue target if project suspended

Siam Cement may review revenue target if project suspended
Published: 15 October 2009

Siam Cement PCL said Thursday that it may have to revise its revenue target if projects at a Thai industrial estate are suspended because of environmental concerns.

Thailand’s largest industrial conglomerate has 21 projects under construction in the Map Ta Phut Industrial Estate in eastern Rayong province worth THB100 billion ($3 billion), company Vice President and Chief Financial Officer Roongrote Rangsiyopash told reporters.

The Administrative Court in late September issued an injunction to suspend 76 industrial projects, valued at THB400 billion ($11.9 billion), in the estate.

The suspension came after environmentalists argued that the permits approved by the government violated the constitution.

However, the government has appealed the ruling and the projects will remain operational until a final decision has been handed down.

Roongrote said the company has completed around 60% of construction of the projects, adding that revenue is expected to be gradually recognized from 2010.

He said the company will file an appeal against the court’s decision.

The court’s decision may also effect plans for follow-up projects, he added.