Myanmar in focus of SCG's Asean growth story
Thai industrial conglomerate Siam Cement Group (SCG) will invest half of its US$7 billion investment budget in the next five years in Asean, including Myanmar.
“SCG has confidence in Myanmar and values the country as one of its strategic markets,” Kan Trakulhoon, SCG president and CEO, told a press conference in Yangon last week.
“We are committed to building our presence in this country, strengthening our relationships, uplifting partnerships with our stakeholders here by collaborating and developing business together in order to provide a more stable base when the policies and strategies of the Asean Economic Community are enacted. SCG firmly believes in the bright future of Myanmar and will take part in supporting work with all stakeholders in Myanmar to help build a better, more sustainable future.”
The group is now constructing a $400 million cement plant in Mon State’s Mawlamyine Township, which is undertaken by Mawlamyine Cement Ltd. The plant is expected to commence operations in the second quarter of 2016 with the annual production capacity of 1.8 million tonnes. Since the investment was announced, this is the first time that the CEO addressed local media.
The group has been exporting products to Myanmar for more than 20 years. In 1996, Myanmar CPAC Service Co was established to manufacture ready-mixed concrete.
Recently, SCG launched its new cement bag, moving from using the “Elephant” brand to clearly identifiable “SCG” branding, to strengthen its brand recognition amongst customers in Myanmar and across Asean.
On SCG’s approach to capacity building and training of its staff in Myanmar, Kan said through the pool of over 49,000 employees, competencies and skill of SCG staff in Myanmar would be developed to meet world-class standards and global practices.
“This will empower the employees to develop their full potential and become major driving forces, allowing SCG to deliver premium quality products and services to consumers as well as helping to enhance the quality of life of people in Asean and creating higher value for all stakeholders”, he added.
SCG has also introduced a number of corporate social responsibility activities to improve the lives of people in Myanmar, which include educational support for students, public health and medical programmes, and community-building activities. Chief among them is the SCG Sharing the Dream Programme, which was launched in Myanmar to provide educational support for students. Launched in 2012, high-school students were awarded scholarships to help to cover their school fees and school supplies for an academic year. SCG has recently launched the third edition of the programme this year to assist an additional 200 high-school students with scholarships.
In line with its sustainable development goal, SCG will also introduce environmentally friendly technologies such as waste heat power generation and greenhouse gas reduction at the new cement plant. In recent months, SCG has also commenced engaging the communities around the plant to inform them about the planned developments.
“At present, we are focusing on our cement business and to launch operations at our greenfield plant in Mawlamyine. The cement business will be the main driver for us to expand other aggregates, such as ready-mixed concrete and precast,” said Kan.
He is optimistic for the development of the cement and building materials industries in Myanmar, saying, “SCG sees strong potential in the Myanmar market as the country is developing steadily and there is a need to build basic infrastructure. There are also increasing investments in the industrial and property development sectors. The growing urbanisation will also increase demand for residential products especially in the three key cities of Yangon, Mandalay, and Nay Pyi Taw.”
