ASEAN KEY DESTINATIONS
SCG to invest US$ 1.4 billion in RI in 2015
Thailand-based cement producer Siam Cement Group (SCG) has said it will boost its total investment in the Indonesian cement industry to US$ 1.4 billion by 2015.
SCG president and CEO Kan Trakulhoo said the Thai firm began to operate in Indonesia in 1996 and had continued to expand its business here due to its confidence in the country’s solid economic growth.
"As of 2014, we have total assets of around $ 1 billion. Because we are happy with the investment climate in Indonesia, which is good, we are planning to increase the total investment to around $1.3 billion - 1.4 billion in 2015," Trakulhoo told reporters in Bangkok over the weekend.
Trakulhoo gave no further details on the 2015 investment plan except to say that the additional investment would cover cement-related products.
It is expected that the new cement plant located in Sukabumi, West Java, will kick off production in the middle of 2015. The cement plant, which will be run by SCG's wholly owned subsidiary, PT Semen Jawa, will have a production capacity of 1.8 million tons per year.
"The construction of the Sukabumi plant is under way and we expect that in the middle of 2015 it will start to operate," Trakulhoo said.
SCG reported that it invested $532 million in 2012. The investment covered the development of a green-field plant worth $41 million and the acquisition of a ready-mix concrete business amounting to $135 million while the remainder was in the development of lightweight concrete blocks.
As of today, the company’s total assets in Indonesia amount to $983 million, accounting for a total of 55 percent of SCG’s assets in the Southeast Asia region.
SCG’s portfolio includes holdings in several companies in Indonesia. Through SCG Building Materials Co. Ltd., SCG holds a 96.31 percent stake in Jakarta-listed PT Keramika Indonesia Assosiasi while through SCG Chemicals Co., Ltd., it holds a 30.03 percent stake in petrochemical producer PT Chandra Asri Petrochemical.
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