The Siam Cement Group (SCG), Thailand's largest industrial conglomerate, is exploring business opportunities in Burma to tap the neighbour's potential, particularly in building materials and cement.
Entering the Burma market is part of SCG's drive to become the industrial leader in Asean countries by 2015, said president and CEO Kan Trakulhoon.
The political situation in Burma is expected to be more stable after the general election scheduled for the end of this year. As Burma opens up more to foreign investment, Thai industry and business will have more opportunity to tap this big market, Kan said.
SCG is one of many Thai companies that are exploring investment opportunities in Burma.
Besides, Burma's border is close to southern China, while the transportation system between the two countries has been improved sharply as part of the Greater mekong Sub-region development process. So, if SCG can enter this country, it can also enlarge its market to include China, Kan said.
He said SCG's management development committee - the general meeting of the company's management team - will hold a meeting in Burma this month. The company will survey the Burmese market feasibility.
"Burma has a lot of potential for SCG investment, particularly in the cement and building material businesses," he said.
SCG has set itself the goal of becoming the industrial leader within Asean by 2015. At present, about 8 per cent of its revenue is contributed from operations in four Asean countries - Vietnam, the Philippines, Cambodia and Laos. The company's strategy to expand its business in the region is either through its own investment or by merger & acquisition.
Kan said the company is the market leader in the paper and building-material businesses in the region, while the cement business is second-ranked behind the Holcim Group.
Roongrote Rangsiyopash, vice president and chief financial officer, said in order to achieve SCG's goal, it has to put in more efforts to invest in Asean. It means the investment budget for businesses outside Thailand will exceed that in the home country.
SCG has already created a rough budget for investment within Asean, but Roongrote declined to disclose the figure.
He said it was not necessary for SCG to enter every Asean market. The possible targets for the company are Vietnam, the Philippines, Indonesia, Laos and Burma.
"We would like other Asean members to recognise SCG as the largest industrial conglomerate in this region that operates its business sustainably," he said.