Siam Cement to review capex plans, Thailand
Thai conglomerate Siam Cement Group (SCG) is reviewing its THB150bn, five-year investment plan in light of the effects of Europe’s sovereign debt crisis, the Bangkok Post reports.
According to Kan Trakulhoon, president and CEO of SCG, the revision reflects weak demand for the company’s products on the global markets. The current plan calls for capital expenditure of THB150bn to be spent between 2012-16, up from the original target of THB100bn.
"We are reviewing the five-year investment plan this month, and it's subject to the endorsement of the company's board in August," he told reporters on the sidelines of a CEO forum held at the Stock Exchange of Thailand recently.
Mr Kan previously expressed concern about the prolonged European crisis and the weaken-than-expected US economy, saying declining demand in both markets will affect Asian economies.
Exports account for 29 per cent of SCG’s revenue and shipments to markets such as China have already registered declines.
On a more positive note, building material sales in Thailand have rebounded strongly during the current quarter, according to Mr Kan. Cement sales growth is seen exceeding the company’s goal of five per cent. As a result, the group’s full year-revenue target of THB400bn remains on track, Mr Kan noted.