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SCG to add third cement plant in Cambodia

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World Cement,

Siam Cement Group (SCG) is expanding its presence in the Cambodian construction sector with the construction of a third cement plant to be opened next year.

According to a report in the Khmer Times, Kampot Cement – in which SCG is a major shareholder – began construction of the third plant last year with operations due to start in 2018. Quoting the local governor, the news outlet reported that the plant was about 60% complete.

The new plant is expected to produce 1.8 million tpy of cement, according to Somwang Manpimonchai, the head of SCG’s Cambodian business, and supply the domestic market, as well as exporting to Thailand.

Cambodia’s construction industry is expected to continue to grow strongly as the government pushes infrastructure development and a building boom continues in the country.

According to a report from the Ministry of Land Management, Urban Planning and Construction, investment in the construction sector reached around US$8.5 billion in 2016, compared to US$3.3 billion in 2015.

“We maintain our positive outlook on Cambodia’s infrastructure sector amid continued government efforts to maintain a favourable business environment in a bid to continue to attract foreign direct investment,” said BMI Research in a recent note. BMI Research expects Cambodia’s construction industry value to grow by 9.92% in 2017, up slightly from 9.87% in 2016 and 7.81% in 2015.

As a percentage of GDP, the construction sector will hit 9.2% in 2017, compared to 8.9% in 2016, the research company added.

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