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Published on November 22, 2007

Siam Cement Group (SCG), one of the largest conglomerates in the region, is freezing investment plans for new projects in the Philippines, saying it will focus more on mergers and acquisitions.

The Daily Tribune quoted SCG Paper president Chaovalit Ekabut as telling Philippine media that the company's vision of becoming a leading company in the region depended on important strategies that may involve investing more in new projects in countries other than the Philippines.

Chaovalit explained that since the Philippines had established markets for its paper, tiles, building materials and distribution businesses, fresh investment would likely go to other countries such as Vietnam, Indonesia, Cambodia and Singapore.

The Philippines plays a very significant role in expanding the company's market share in the entire Asean region, he added.

Despite the recent reports of bombings, political problems and the high cost of doing business, the Philippines will remain a key area for the company to tap wider markets globally, Chaovalit said.

The company plans to invest in mergers and acquisitions. "We have projects in the pipeline but we cannot disclose details yet," he said.

"SCG has pursued a business direction to expand investments in Asean. We saw the Philippines' potential to become a key market a decade ago, which made us decide to invest in the country. We are looking at further investment opportunities in the future depending on current growth and demand."

SCG's businesses in the Philippines include United Pulp and Paper, the Philippines' largest producer of packaging paper and corrugated material used in carton packaging products; Mariwasa Siam Ceramics, the country's largest ceramic tiles manufacturer; CPAC Monier Philippines, a manufacturer and distributor of concrete roof tiles, fittings and accessories; and SCT (Philippines), a trading company that supplies energy, industrial and recycling products.

The company also disclosed a plan to increase its share in Mariwasa from 47 per cent to become the majority owner.

With a total of 10 billion Philippine pesos (Bt7.2 billion) in assets, SCG's businesses in the Philippines generated revenue of 7.5 billion pesos in 2006.

Under its "Go Regional" expansion strategy, SCG has expanded investments in many countries in Asean, including paper, building materials and chemicals projects in Vietnam, cement and building materials projects in Cambodia, chemicals and cement projects in Indonesia, corrugated boxes and building materials in Malaysia and Singapore, and paper and building materials in the Philippines.

"Ultimately, our goal is to become the regional market leader. We will continue with a sustainable expansion programme within the Asean region," Chaovalit added.

SCG was established in 1913 following a Royal Decree by His Majesty King Rama VI to produce cement, the main building material for infrastructure projects contributing to the progress of the country.

In the late 1990s, the group diversified to five core businesses focused on chemicals, paper, cement, building materials and distribution.

The Nation