PHNOM PENH | Wed Dec 8, 2010
PHNOM PENH Dec 8 (Reuters) - Thailand's Siam City Cement Pcl SCCC.BK said on Wednesday it was looking at building a new plant in neighbouring Cambodia that could double its capacity there to 2 million tonnes or more.
Managing Director Philippe Arto said at a signing ceremony for a feasibility study to be conducted with Chip Mong Group, a local construction materials distributor, that it could add new capacity of between 1.0 and 1.5 million tonnes a year.
Chip Mong's president, Leang Meng, told reporters that the investment would be worth $200 million.
This year Siam City will produce nearly 1.0 million tonnes of cement. Company officials put annual demand in Cambodia at about 2.5 million tonnes.
"We want to run this plant at full capacity, so whatever the local market can't absorb for now, we will export. And then, over time, the local market will continue to grow and this plant could be fully dedicated to the domestic market, maybe in 15 years," Arto said. (Reporting by Prak Chan Thul; Editing by Alan Raybould)