Construction of Siam Cement Group’s (SCG) new 2Mta plant in Myanmar is progressing well with completion is scheduled for 2016, Chana Poomee, country director of SCG in Myanmar, has said.
Mr Poomee told The Nation newspaper that the project has received full support from the government and Mon State. Work currently underway includes construction of a new 20km road while the company is also repairing many roads in the state.
SCG is one of a number of companies entering this high growth potential market. Myanmar is one of the smallest cement producers and cement-consuming countries in southeast Asia. Cement consumption is estimated at 6Mta but is expected to rise further as government construction projects that have been delayed will resume.
The country currently relies heavily on imports to meet demand encouraging the New Democratic Mayanmar Government to issue 27 licences for new cement plants. Since 2011, only four cement companies have begun their new cement plant projects. The government is now pressing ahead with the process in which companies can go ahead with their proposed cement plants, although not all on the list are expected to come to fruition. As at January 2014, Myanmar’s Investment Commission had approved nine new plants, which would increase cement capacity from 4Mta to 10.53Mta.