SCG Cement-Building Materials Company Limited, a wholly-owned subsidiary of SCG, has acquired the 100% equity (US$156 million) or approximately 5,460 million Bath in Vietnam Construction Materials JSC (or “VCM”), which is an integrated cement operator in central Vietnam, from existing owners. The enterprise value (EV) of this transaction is US$440 million (approximately 15,400 million Baht), which includes net debt and additional efficiency improvement investment to the acquired assets.
With the cement acquired production capacity of 3.1 million tons (OPC-equivalent) in central Vietnam, there is potential for further efficiency enhancements to the total capacity. Central Vietnam is characterized by a well-balanced supply and demand equilibrium of cement. Following this transaction, SCG’s combined cement capacity across ASEAN (ex-Thailand) increases to 10.5 million tons, relative to the existing 23 million ton capacity in Thailand.
Furthermore, SCG’s efforts are in place to continually ensure that the integrated business
and community model remains across ASEAN. All factories under SCG are focused in creating world class products, along with implementing safety mechanisms in production for the community, the society and the environment. Ultimately, to sustainably increase the standard of living of all ASEAN stakeholders.