Siam City Cement to upgrade and reactivate kiln line, Thailand

Siam City Cement to upgrade and reactivate kiln line, Thailand
18 February 2013

Thailand’s second largest cement producer, Siam City Cement Co (SCCC), reported a 14 per cent rise in revenues for 2012 and says it plans to increase production at its Saraburi works.

SCCC, part of the Holcim Group, achieved revenue of THB26.4bn (US$883m) in 2012, on the back of strong domestic cement consumption and significant growth in cross-border exports. Net profit rose by 10.4 per cent to THB3.6bn during the year. Fourth-quarter net revenue tripled YoY to THB756m as net sales surged by 26 per cent to nearly THB6.4bn.

Expected rises in consumption

Figures from the Office of Industrial Economics show that domestic cement consumption grew by 11 per cent last year, driven by infrastructure projects and the commercial and real estate sectors. This year, demand is expected to grow by a further seven per cent.

Kiln line to be reactivated

To further serve expected increases in consumption and to maintain its market share of 27-28 per cent, SCCC says it plans to reactivate one of its two kilns at its Saraburi works which have been shut down for five years. Speaking to the Bangkok Post, managing director of SCCC, Philippine Arto, said the company will spend THB1.45bn to upgrade the line which is set to be reopened in October 2013. The Saraburi works currently has a capacity of 16.5Mta.

Changes in ownership structure

At the end of last year, Holcim Ltd reduced its shareholding in SCCC from 36.8 per cent to 27.5 per cent.  The shares were purchased by Bangkok Broadcasting and Television Co, a company of the Ratanarak Group, which increased its shareholding in SCCC to 47 per cent. Holcim remains a strategic partner in SCCC.

Published under Cement News