General Engineering Plc's board of directors yesterday approved the acquisition of 20 per cent of Millcon Steel Plc to become a major player in the fully-integrated construction materials business.
General Engineering will use the Bt44.55 million proceeds from the sale of 8.9 per cent of Aqua Corporation for expansion in only core and related business.
Tawas Ananthanavanich, managing director of General Engineering, said the company’s stake in Millcon should strengthen its market position in the future, as Millcon’s business will complement its current business in pre-stressed concrete piles and various concrete products.
The synergy with Millcon will benefit General Engineering in trading steel, a vital raw material, sharing of steel production technology, developing products, adding value to steel-reinforced concrete products, expanding local and foreign markets, minimising steel price volatility and steel shortage risk, and boosting efficiency in delivery and managing raw materials/products inventory.
General Engineering’s stock closed Bt0.71 per share, up 1.43 per cent from Wednesday, while Millcon Steel’s stock closed Bt2 per share, unchanged from Wednesday.