Siam Cement Group sees revival in Myanmar demand

Siam Cement Group sees revival in Myanmar demand
24 January 2012

Siam Cement Group (SCG), which provides cement exports to Myanmar, is anticipating strong sales in the Southeast Asian country following significant declines last year.

Syamrath Suthanukul, marketing director of Thailand’s SCG told the Myanmar Times that last year sales fell approximately 20 per cent YoY as the transition to a democratic government in 2011 affected a number of construction projects and reduced cement sales.

“In 2011, our cement exports to Myanmar were down by about 20 per cent from 2010 because of the changes that were taking place within the government. As a result, a number of projects were delayed,” Mr Syamrath said. “There were also fewer projects in 2011,” he added.

The previous year had seen record sales for SGC exports to Myanmar, with many projects under construction in Nay Pyi Taw using its cement, Mr Syamrath noted. 

Mr Syamrath noted that the company is expected to face increased competition in the coming years but is positive it can maintain its sales position.  “We know that there will be more cement brands in Myanmar in coming years and we expect to face strong competition but it’s still a great market to be in,” he added.

“For 2012, we’re hoping the market will be great for us,” he said, adding that the company supplied a number of government projects. For example, the Yangon-Nay Pyi Taw highway is made from SCG's Elephant brand.

Kan Trakulhoon, CEO and president of SCG, also recently noted that the company has been studying options for a new cement plant in Myanmar. Mr Trakulhoon was quoted by the Bangkok Post as saying that SCG has been studying options in the neighbouring country for almost two year years now. "Still, the investment depends on the Myanmar government's investment promotion policies and the policy on limestone mine ownership."

Published under Cement News

Tagged Under: Myanmar Siam Cement Group