Siam City Cement PCL (SCCC.TH), Thailand’s second-largest cement producer, is considering acquiring a stake in a ready-mixed concrete company, in a move to boost its market share in the fast-growing segment.
The company’s managing director, Leo Mittelholzer, said Siam City Cement is targeting to boost its market share to about 28% in the next three to five years from 8.3% last year.
To achieve this target, the company will have to extend its network and increase its production and sales volume aggressively, Mittelholzer said.
"If the opportunity comes, we will carefully evaluate it," he said, without elaborating further.
Mittelholzer said Siam City Cement has been in talks with Chonburi Concrete Product PCL (CCP.TH), a concrete producer, for an opportunity to supply its product to mega infrastructure projects. However, he didn’t say when the negotiations would be concluded.
Siam City Cement this year plans to build around 20 ready-mixed concrete plants with an investment of around $1.5m each. Its sales target this year for ready-mixed concrete is 2.1Mm3, or around 10%-11% of the total market, said Mittelholzer.
The company Monday launched a brand repositioning campaign to become a "cement solution specialist". The move will help it strengthen its long-term relationships with its clients and achieve this year’s sales growth target of 11%-15%.
Its domestic sales volume last year for its cement products amounted to 7.1Mt.