Siam Cement has announced plans to expand operations in Southeast Asia by setting up a plant in Vietnam, where there have been forecasts of a rise in demand.
Roongrote Rangsiyopash, President and CEO of the conglomerate, told reporters in Bangkok Wednesday that Siam is looking at a joint venture or merger to enter the Vietnamese market, Nikkei Asian Review reported.
Vietnam’s annual cement production exceeds demand, which was 72 million tons last year, according to the construction ministry.
But Siam is eyeing an increase in public and private construction as Vietnam has been projected to grow at more than 6 percent for the next three years, its executives said.
A time frame for the expansion has not been revealed.
The company has plants in Cambodia and Indonesia and will set up production lines in Myanmar later this year and Laos in 2017.
Siam Cement’s subsidiary SCG Chemicals Co. is the biggest shareholder with a 46 percent stake in a $4.5 billion petrochemical project in the southern Vietnamese province of Ba Ria-Vung Tau, a joint venture with state-owned oil and gas group PetroVietnam and other local players.
Qatar Petroleum used to own 25 percent but pulled out last year, citing falling oil prices.