Siam Cement PCL has delayed cement plant expansion in Cambodia and a new investment in Indonesia as cement demand falls due to a global economic slowdown, its cement division president said on Thursday.
Thailand’s biggest industrial conglomerate also saw domestic cement consumption dropping 6-7 per cent this year from 25.6Mt in 2007, and at least 10 per cent next year, Pramote Techasupatkul told Reuters in an interview.
Rather than expansion, Siam Cement would focus on a THB4bn (US$115m) investment plan to increase energy efficiency at its cement plants in Thailand and Cambodia, Pramote said.
"We are assessing the global situation. We have to be more prudent on spending," he said.
The company’s domestic cement sales this year would fall to 9Mt, in line with the industry-wide decline, although exports would be 8.1-8.2Mt, close to last year, he said.
Siam Cement has been producing cement at 80 percent of a full capacity of 23.2Mt this year, Pramote added, but might cut production next year in response to weaker demand.