Thursday, August 13, 2009

Thailand's SCG plans for return of the good times

Published on August 14, 2009

Siam Cement Group will revise its Bt120-billion five-year investment programme in light of a global economic recovery expected to be firm in early 2011.

Kan Trakulhoon, president and CEO of SCG, said the programme, which includes investment plans in other Asean countries including Vietnam, Cambodia, Indonesia and Philippines, would take clearer shape soon.

These investment plans were put on hold last year due to the global economic crisis.

The overall Bt120-billion outlay excludes mergers and acquisitions, he said, adding that there had been a number of M&A opportunities in the region as some multinational firms were hard hit by the global crisis and wanted to sell regional business units.

Despite the unfavourable economic conditions, Kan said SCG had kept its human resources development plan intact, with another 3,000 jobs to be added to the current 28,000 employees over the next five years.

SCG aims to increase the number of employees in distribution, chemical and cement businesses in Asean markets, according to Kan.

"Regardless of the economic situation, we're committed to the long-term human resources development plan to achieve the goal of being a leader in Asean. For 2009, our budget for training, for example, remains unchanged at Bt800 million," he said.

Meanwhile, the government's green light for the multibillion-baht mass-transit Purple Line from Bang Sue to Bang Yai as well as the Bt14-billion small rural road scheme will boost the economy and construction sector due to their multiplying effects.

In addition to higher demand for cement and steel, the mass-transit scheme will lead to further investment in property projects along the routes, he said.

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