Published on : Mar 11, 2014
Italian cement giant Italcementi is planning to integrate the Southeast Asian markets by basing its production unit in Thailand when the Asean Economic Community (AEC) comes in force by 2015.
The AEC is being formed with a vision to transform ten Southeast Asian countries- Thailand, Myanmar, Cambodia, Malaysia, Indonesia, Brunei, the Philippines, Singapore, Vietnam and Laos-into a single, big market and production base. AEC nations will observe free flow of capital, skilled labor, services, goods and investments.
Carlo Pesenti, the CEO of the Italcementi group, said in an interview with The Nation that ASEAN nations have enormous growth potential and that the company is planning for additional expansion into Myanmar in the coming future, looking at the rising demand for cement from the country. The company has already started negotiations with a local partner in Myanmar and has started studying foreign investment laws in the country.
The group has its presence in Thailand since 1998 through its cement partner Jalaprathan Cement (JCC), of which the company holds no less than 20% stakes.
In the year 1999, to increase its presence in Thailand, Italcementi bought shares of Asia Cement (ACC) that was operating in the domestic market since 1989.
Italcementi is very positive about its presence and expansion in the ASEAN region, which has brought enormous profits to the Italian cement giant. In the year 2012, the company observed a revenue of 227.9 million euros and net profit of Bt380 millions.
Italcementi Group stands in the top five cement producers in the world and has operations in 22 countries on four continents. The enormous network of the group includes as many as 53 cement plants, 10 grinding centers, 449 concrete-batching units, 7 terminals and 115 aggregates quarries.
The group announced profits of 4.5 billion euros in the year 2012.
On its 150th anniversary this year, the group is planning to invest 150 million euros for renewing its Rezzato plant based in the Brescia province of Italy in an attempt to make it the most environmentally friendly and efficient cement plant in entire Europe.