Thailand: Siam Cement Group signals Asean logistics expansion

Siam Cement Group (SCG) says its logistics unit will cover Asean and southern China within five years, partly through mergers and acquisitions.

Kan Trakulhoon, president and CEO, said the expansion will accommodate growing regional trade under the Asean Economic Community (AEC) from 2015.

SCG has also spread its investments across Southeast Asia, and logistics support is needed wherever it operates, he said.

"We've already started with Cambodia, Vietnam and southern China. Indonesia is the next step," said Mr Kan, adding that by 2015 the company will have full logistics capabilities in Indonesia and Vietnam.

In China, SCG Logistics Management Co provides services to the Mitr Phol Group, which owns a large local sugar operation.

Myanmar is also on the radar screen, with SCG starting construction on a THB10bn (US$318m) cement factory there later this year.

Mr Kan said exports to Asean markets account for 35-40 per cent of SCG revenue.

"Geographical location gives Thailand a competitive advantage for becoming a regional hub. We border Myanmar, Laos, Cambodia and Malaysia and are a short distance from Vietnam," he said.

SCG Logistics Management Co, a unit of SCG Distribution Plc, is one of the largest logistics service operators in Thailand, with more than 10,000 trucks as well as 150 vessels through an alliance with a Singaporean partner to facilitate coastal shipments.

About 15 per cent of its revenue is generated from external customers and the rest from serving SCG businesses.