Siam Cement, Thailand's biggest cement producer, plans to invest more
than $350 million for the construction of a cement plant in West Java
as part of its efforts to expand in the region, local media reported on
The 11 billion baht (about 358 million) Indonesian
cement plant is one of its three projects across Southeast Asia, the
Bangkok- based company said in a statement released on Wednesday. The
other projects include a cement packaging plant in Thailand and
expansion of a cement plant in Cambodia.
"The board of directors
has approved several new investment projects, totaling 23,200 million
baht in the cement and paper businesses. These investments are in
accordance with Siam Cement's strategy to become an Asean sustainable
business leader," the statement said.
The Indonesian cement plant is expected to have total estimated annual production at 1.8 million metric tons.
green-field investment is expected to start up in mid- 2015 and will
include the latest waste-heat power generator system for reduced
electrical consumption," the company said.
Siam Cement says that
demand in Indonesia's cement market is estimated at 54 million tons in
2012, with expected annual growth at 5 percent to 10 percent in the
next 10 years.
Infrastructure projects such as roads, airports and seaports should boost demand for building materials including cement.
Siam Cement's local competitors are Semen Gresik, Holcim Indonesia and Indocement Tunggal Prakarsa.
Thai company's expansion in Indonesia is part of its $754 million
investment project in cement and paper, the Jakarta Globe reported.
Around $179 million will be used to build a second cement line with a capacity of 900,000 tons in Cambodia.
second line will be located in the existing cement facility in Kampot,
which is Cambodia's first cement plant and has been in operation since
mid-2007," the company, adding that the remainder would go to expand
its packaging operations in Thailand.