SCG posts $451M in sales revenue in Cambodia
SCG posts $451M in sales revenue in Cambodia
Thai construction materials producer Siam Cement Group Public Company Limited (SCG) posted $451 million in sales revenue at its Cambodian operations last year, a 13.88 per cent rise from 2018’s $396 million.In the fourth quarter alone, sales reached about $114 million, a 17 per cent year-on-year increase, driven by its cement and construction materials business, SCG said in a press release on Wednesday.
“Cambodia’s economy continued to achieve robust growth during the fourth quarter of last year.
“The construction sector remained healthy thanks to public investment in infrastructure development and the continuing inflow of investment in construction, particularly from China, at new emerging casino towns at Cambodian borders,” the company said.
However, SCG’s global sales revenue last year dropped eight per cent from 2018.
SCG president and CEO Roongrote Rangsiyopash attributed the drop to external factors such as the ongoing Sino-US trade war, US-Iran military tensions and the recent outbreak of the 2019 Novel Coronavirus which has devastated global tourism.
As a result, the firm must develop comprehensive business strategies this year aimed at promptly offsetting disruptions and maintaining sustainable business growth, said Roongrote.
“With a business transformation plan, the three core businesses will shift from being a manufacturer to a solution and service provider that truly and holistically respond to the diversified and ever-changing customer demand as well as creating high value for the business,” he said.
Cambodia imported $1.5 billion worth of construction materials to supply the domestic market last year, about 50 per cent more than in 2018, said a National Bank of Cambodia report.
About $500 million of the imports were steel and about $1 billion other construction materials.
Cambodia Constructors Association general manager and secretary Chiv Sivpheng told The Post that the boom in the real estate and construction sectors has buoyed local demand for construction materials.
As domestic production capacity is limited, the Kingdom imports many products from abroad every year, including cement, iron, bricks, tiles, kitchen utensils and electrical equipment, he said.
Cambodia Cement Manufacturers Association secretary-general Puth Chandarith previously told The Post that demand for cement in the Kingdom has seen a dramatic increase over the last few years.
The Kingdom needs about nine million tonnes of cement per year, whereas the five local factories are only capable of producing eight million tonnes annually when fully operational, he said, citing a study from Chip Mong Insee Cement Corporation.
“All factories will try to increase their production to help reduce imports as well as create jobs for locals,” said Chandarith.
There are currently five cement factories operating in Cambodia – Kampot Cement Company Co Ltd, Chip Mong Insee Cement Corporation, Cambodia Cement Chakrey Ting Factory Co Ltd, Battambang Conch Cement Company Limited and Thai Boom Roong Cement Co Ltd.
The Ministry of Land Management, Urban Planning and Construction last year granted permission for 4,446 construction projects, worth some $9.353 billion, on a total area of 18.54 million square metres, it said in a report.
In 2018, there were 2,867 construction projects on 11.42 million square metres, worth around $5.228 billion, it said. Construction investment capital last year increased by 78.88 per cent over 2018.
