Siam City Cement looking to acquire stakes in local cement companies , Thailand

Siam City Cement looking to acquire stakes in local cement companies , Thailand
Published: 23 February 2005

Siam City Cement Plc (SCCC), the country’s second largest cement producer, plans to acquire stakes in other local cement makers, according to managing director Leo Mittelholzer, according to local press.

"We are continually looking for business opportunities to acquire some stakes in the companies that are involved in our core businesses," he said. 

Mr Mittelholzer declined to comment directly on market rumours that SCCC was considering acquiring Jalaprathan Cement, a ready-mixed concrete producer delisted from the Stock Exchange of Thailand in 2002. 

"We do not confirm or deny [the rumours]. I’ve never heard that Jalaprathan was up for sale," he said, adding that SCCC would consider any new investment only if returns were suitable. Late last year, SCCC announced an agreement with SET-listed Chonburi Concrete Products (CCP) to co-invest in ready-mixed plants to service new state infrastructure projects, including the Suvarnabhumi Airport rail link project. 

Mr Mittelholzer said CCP was an "interesting company", given its presence in the ready-mixed concrete market, its lightweight concrete block plant and plans to boost capacity for precast production. 

The agreement with CCP was a key element of SCCC’s plan to raise its market share in the ready-mixed concrete segment to 28% in 2008 from 8% last year. 

SCCC projects sales of ready-mixed concrete of 2.1Mm3 this year, an increase of 10-11% from last year. Domestic consumption this year is projected at 20Mm3 , up from 18Mm3 last year. 

The company has set up four new ready-mixed plants in Bangkok, and plans to add up to 20 plants nationwide by the end of the year.