Friday, October 19, 2012

Max Myanmar enters cement deal

Friday, 19 October 2012 14:05 Mizzima News

Max Manufacturing Company of Burma will increase its daily cement production capacity from 500 tonnes now to 2,600 tonnes by the end of next year and 4,200 tonnes in 2014, according to a deal with a Thai company, the Bangkok Post reported on Thursday.

The deal involves the renovation of  two present cement factories located close to Naypyitaw.

Max Cement is a branch of Max Myanmar Group Companies. This facility is located in Taung Philar in Reni District. Photo: Max Myanmar Group Companies

LV Technology (LVT) of Thailand will issue 396.69 million new shares to raise funds to invest in a cement business through a unit of the Max Myanmar Group of Companies, said the Post.

At present, Burma consumes 4.5 billion tonnes of cement per year including 2.5 billion tonnes imported, said the article.

"The cement business in Myanmar is expected to see rapid growth such as that seen in Thailand 30 year ago. Thailand's cement business has grown six-fold since that time, and Myanmar's is expected to grow by 10-12 per cent per year, based on an assumption of 5 per cent GDP growth," a LV Technology official said.

Earlier, Mizzima reported that several companies in Thailand and Indonesia were eyeing Burma to expand their cement production businesses.

PT Semen Gresik, Indonesia's biggest cement maker, has said it will build a US$ 159 million plant next year with a capacity of up to 1 million tonnes per year, chief executive Dwi Soetjipto said, according to domestic Indonesia media.

“We will set up a joint-venture with a local partner to build a factory with a capacity of 600,000-1 million tonnes a year.” he said, based on anticipated demands for infrastructure as foreign companies move into Burma in the coming years.

On Feb. 2, Mizzima reported that Siam City Cement Plc (SCCC) of Thailand was looking at building a cement plant in Burma.

Managing director Philippe Arto told domestic media that the company already had contacts and is studying potential investment locations throughout the country.

“For SCCC, we see the real potential and are positive about Burma. We have to act fast to grow our business there,” he told local media.

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