Semen Indonesia may not go ahead with its planned investment in Myanmar, according to reports, since it is yet to finalise an agreement with its local joint venture partner.
Agung Wiharto told the Jakarta Post: “Negotiations are still ongoing, but we still haven’t reached an agreement with our local partner on certain problems, including share price and the size of the stake to be acquired.”
The company originally wished to have a majority stake in its Myanmarese JV, which has been a sticking point. However, this latest report stated that the Indonesian cement leader would be satisfied even without a controlling stake. Agung also said that if this plan doesn’t work out, Semen Indonesia would either look for another partner in the country or move to another country, such as Vietnam, Cambodia or Bangladesh, in line with its ambition to become a regional player.
Meanwhile, Siam Cement Group is reportedly planning a JV with Siam Global House to open two construction materials retail stores in Myanmar. This move would take advantage of the high demand for building materials in the country. From there, the Thai companies would expand into other parts of Southeast Asia, as well as within Thailand.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/19012015/cement-companies-explore-opportunities-in-myanmar-155/