VIETNAM: SCG readies THB 60 billion capex outlays

Siam Cement Group (SCG), Thailand's biggest maker of cement, construction materials and petrochemical products, on 24 Jan 2018 said it would allocate THB 60 billion for capital expenditure (capex) this year. Some THB 20 billion of this amount would be used in the development of a petrochemical complex in Vietnam. 

Chaovalit Ekabut, SCG’s vice president for finance and investment and chief financial officer, said that the investment funds would be used to boost its manufacturing capacity at existing plants, as well as in those gained from potential acquisition deals. “We plan to invest approximately THB 60 billion this year, of which the major investment of about THB 20 billion will be for the development of our petrochemical complex in Vietnam,” said Chaovalit.

He said that SCG had invested THB 46 billion last year, which came in lower that the target set by the group at the beginning of the year. This was due to a delay at the petrochemical complex in Vietnam by between three and six months.

Roongrote Rangsiyopash, president and chief executive offer of SCG, said: “We are negotiating with our partner in Vietnam for the construction of a petrochemical complex, sources of funding and other necessary issues related to the partnership itself. We would like to conclude such negotiations within the next two to three months.”

Roongrote said that once completed, the petrochemical complex in Vietnam would help increase the proportion of petrochemical business at SCG, which now stands at 50 per cent of total sales and three-quarters of profit.

Chaovalit said that SCG expected its petrochemical complex in Vietnam to start construction work within the first half of this year and that it would take about four and a half years until completion.

Source: Daily “The Nation”, Bangkok; 25 Jan 2018
(Syed Rashid Ali, Karachi, Pakistan)