Bangkok--26 Jan--SCG
Mr. Kan Trakulhoon, President of The Siam Cement Public Co., Ltd. reveals that the board of directors has approved the 2,900 million baht investment to expand the production capacity of Thai—MMA Co., Ltd., under Chemicals business, and build new Lifestyle Centre, under Distribution business, to display innovative products of SCG.
Increase the production capacity of Thai-MMA Co., Ltd
Siam Cement Group will increase the production capacity of Thai—MMA Co., Ltd. by 90,000 tons of MMA and 20,000 tons of continuous cast sheets. The expected start-up for the second MMA line is Q2/10, and is located at Site 3 in Rayong province, while the start up for continuous cast sheet line is Q4/09, and is located at Site 7 in Rayong province.
MMA is an important element in the production of plastic sign boards and signal lights, which are related to the advertising and automotive industries, while continuous cast sheet is an important element in the production of light guide panel in LCD, which is related to the electronics industry. In terms of production, MMA will source its raw material from SCG’s second naphtha cracker, while continuous cast sheet will use internally source MMA as raw material.
The total investment of these two projects is 10 Billion Baht, while SCG’s total equity portion for these two projects will amount to approximately 2,500 MB.
Thai—MMA Co., Ltd. is a joint venture between SCG (45% stake) and Mitsubishi-Rayon Co., Ltd. of Japan (45% stake). Thai-MMA had recorded FY2005 sales of 5,600 MB, EBITDA of 2,500 MB, net profit (after tax) of 2,200 MB, and had assets of 4,500 MB.
The Lifestyle Centre
The Lifestyle Centre will display products and innovations. Moreover, the centre will showcase the complete array of offerings available, such as interior design services, home consultancy clinics, and products consultation, as well as creating positive brand equity for SCG. The Lifestyle Centre will be located on Kaset-Nawamin road and is expected to hold its grand opening in Q1/08. The total investment is 400 million baht.