Siam Cement Pcl, Thailand’s biggest producer, may spend as much as THB6bn (US$189m) to build a second factory in neighbouring Cambodia to triple its production capacity there.
The planned factory, twice as big as the first plant, will increase the Bangkok-based company’s capacity in Cambodia to 2.55Mta, company President Kan Trakulhoon said in a May 2 interview. A feasibility study will be completed this year.
Siam Cement, controlled by the king’s asset management arm, is building cement and paper plants in countries including Vietnam and the Philippines to counter slowing domestic sales. The company is also expanding investments in petrochemicals to benefit from oil reserves in the region.
“We have to import cement for our customers in Cambodia, as the first factory, which started operations in January, is already running at full capacity,’’ Kan said. “There’s a very strong outlook for cement sales in Cambodia because of infrastructure development and economic growth."