Siam City Cement to expand investment in Vietnam

Siam City Cement, Thailand's leading cement manufacturer, has completed necessary procedures to expand production in Vietnam, a group executive said.

Aidan John Lynam, CEO of the group, shared the information in a meeting with Vietnam's Deputy Minister of Construction, Nguyen Van Sinh, late last week.

Siam City Cement Group was established in 1969 in Thailand and started producing cement in 1972, specializing in providing cement products, aggregates, and construction solutions. The giant plans to expand its footprint throughout the region, including Indonesia, Cambodia, Bangladesh, Sri Lanka, and Vietnam.

In 2017, the group spent $580 million for a 65% stake of Holcim Vietnam, one of leading cement and concrete suppliers in southern Vietnam, and renamed it INSEE. The firm currently operates five cement facilities and concrete batching mills in the south, with its headquarters in Ho Chi Minh City.

Lynam said that the corporation maintains frequent contact with the Ministry of Construction and actively collaborates with the Vietnam Institute for Building Materials to deploy advanced technological applications in cement manufacturing and new product development.

Deputy Minister Sinh praised the group’s achievement over many years in Vietnam, especially the Hon Chong cement factory in Kien Giang province, which supplies stable cement and construction mortar to the southern market.

He said the ministry is currently coordinating with localities to implement the planning of minerals as building materials, including minerals for cement production. "Therefore, Siam City Cement needs to assess raw material sources as it expands cement manufacturing lines in Vietnam," he noted.

The duo recognized that cement production presents several obstacles in terms of mineral resource extraction, investment, manufacture, and saving raw materials, fuel, and energy. Effective solutions to solve obstacles are required for the cement sector to develop sustainably, contributing to the conservation of the natural landscape and the environment.

Vietnam currently has 90 cement production lines, with a total capacity of 107 million tons. The country ranks fifth in the world in terms of cement manufacturing capacity, trailing China, India, the U.S., and Russia, according to the Vietnam National Cement Association

Vietnam's cement output has consistently increased throughout the years, climbing from 13 million tons in 2000 to 101 million tons in 2021.

Cement sales in 2021 reached 105 million tons, marking the second consecutive year that exceeds over 100 million tons. Of this, export accounts for 43% and domestic consumption 57%.