Siam City Cement shelves $200m Cambodia project

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Siam City CementThailand’s second-largest cement company, Siam City Cement, has suspended a cement-plant project valued at about $200 million in Cambodia’s Kampot province, citing “political uncertainty and better investment opportunities in Myanmar.”

The plant was expected to produce between 1 and 1.5 million tonnes of cement a year to feed the growing demand in Cambodia’s construction sector.

The company said that the project was “not a priority while we have many things to do in Thailand”, adding that Siam City Cement is also looking into the possibility of expanding into Myanmar to take advantage of rapid growth there in the cement market.

An agreement to conduct a feasibility study between the Thai cement company and Chip Mong Group, a Cambodian construction supplier, was signed on December 8 of 2010. Construction on the plant was supposed to start in 2011.

Cambodia still has no new government after the July 28 national elections. The opposition Cambodia National Rescue Party, which won 55 of the 123 seats in the National Assembly, is challenging the results based on allegations of voting fraud, and is holding a mass demonstration on September 7.

Confidence in the economy fell 51 per cent in the post-election period, according to a survey of foreign business leaders working in Cambodia.

The shake-up is the second time in the past month that a Thai-Cambodia venture has undergone changes. Earlier in August, Thailand’s The Nation newspaper reported that Thailand’s Ratchaburi Electricity General Holding was pulling out of a power plant deal in Koh Kong province.

Thailand is the 8th-largest investor in Cambodia, having poured $746 million into the country from 1994 to 2011.

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Reading Time: 2 minutes

Thailand’s second-largest cement company, Siam City Cement, has suspended a cement-plant project valued at about $200 million in Cambodia’s Kampot province, citing “political uncertainty and better investment opportunities in Myanmar.”

Reading Time: 2 minutes

Siam City CementThailand’s second-largest cement company, Siam City Cement, has suspended a cement-plant project valued at about $200 million in Cambodia’s Kampot province, citing “political uncertainty and better investment opportunities in Myanmar.”

The plant was expected to produce between 1 and 1.5 million tonnes of cement a year to feed the growing demand in Cambodia’s construction sector.

The company said that the project was “not a priority while we have many things to do in Thailand”, adding that Siam City Cement is also looking into the possibility of expanding into Myanmar to take advantage of rapid growth there in the cement market.

An agreement to conduct a feasibility study between the Thai cement company and Chip Mong Group, a Cambodian construction supplier, was signed on December 8 of 2010. Construction on the plant was supposed to start in 2011.

Cambodia still has no new government after the July 28 national elections. The opposition Cambodia National Rescue Party, which won 55 of the 123 seats in the National Assembly, is challenging the results based on allegations of voting fraud, and is holding a mass demonstration on September 7.

Confidence in the economy fell 51 per cent in the post-election period, according to a survey of foreign business leaders working in Cambodia.

The shake-up is the second time in the past month that a Thai-Cambodia venture has undergone changes. Earlier in August, Thailand’s The Nation newspaper reported that Thailand’s Ratchaburi Electricity General Holding was pulling out of a power plant deal in Koh Kong province.

Thailand is the 8th-largest investor in Cambodia, having poured $746 million into the country from 1994 to 2011.

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