Myanmar: Siam Cement starts work on new plant

Myanmar: Siam Cement starts work on new plant
24 November 2014

Thailand's largest cement producer, Siam Cement Group (SCG), has begun work on its greenfield Mawlamyine plant, in Mon State, Myanmar. The new 1.8Mta facility is scheduled to start production in 2Q16. SCG has finished work on an access road and is building a 40MW plant to power the factory. The site for the plant is also being prepared for work.

Myanmar country director for SCG Cement-Building Materials, Chana Poomee, said SCG’s sales in the country will reach 2Mta by this year. Currently, the company’s two main subsidiaries in Myanmar are Myanmar CPAC Service and Mawlamyine Cement. SCG has been exporting to Myanmar for over two decades and in August 2013 announced its intention to build its first plant in the country at Mawlamyine.

Growing urbanisation is increasing demand for construction materials for residential development and especially Yangon, Mandalay and Nay Pyi Taw are driving cement sales.

“The growth of Myanmar’s GDP and GDP per capita after the country opened up for foreign investments in recent years have resulted in the increase in consumer demand and foreign investments. This has also contributed to increased sales opportunities for SCG and its expansion in the market,” Mr Poomee said.

He added that SCG sees strong potential in the Myanmar market, especially with the upcoming establishment of the ASEAN Economic Community, which is set to lower trade barriers and ease customs procedures between most ASEAN countries at the end of 2015.

Beyond the Mon State project, SCG is looking for future opportunities to invest in Myanmar, both via greenfield projects or through acquisitions, though “it depends on market demand and customer needs,” said Mr Poomee.

The firm is eyeing other regional expansion opportunities in other ASEAN markets such as Indonesia, Vietnam and Cambodia.

“For the market share of cement, ready-mixed concrete and fibre cement board, SCG is the market leader [in Myanmar] and sees more potential on the growth of structural products as a result of increasing infrastructure development projects in Myanmar,” Mr Poomee said.

Published under Cement News