--The euro zone economic crisis provides acquisition opportunity
for Siam Cement to expand into Europe
--Inventory loss likely to weigh on firm's petrochemical
business in the second quarter
(Adds impact of euro-zone crisis in the 3rd paragraph, outlook
of petrochemical business in the 4th and 5th paragraphs.)
A Dow Jones Newswires Roundup
BANGKOK--Siam Cement PCL (SCC.TH), Thailand's largest industrial
conglomerate by revenue, is considering acquisitions in the
Association of Southeast Asia Nations, with a focus on Vietnam and
Indonesia, Chief Executive Kan Trakulhoon said Friday.
Between the two countries in focus, Siam Cement is paying more
attention to Indonesia given its large population and lower
dependence on the export sector, Mr. Kan told reporters.
He also said the euro zone's economic crisis won't have a direct
impact on the company since it barely sells any products there, but
it does provide Siam Cement an opportunity to expand its business
in the region via acquisitions.
Despite improving petrochemical spreads, Siam Cement's
petrochemical business will likely be weighed by inventory loss in
the second quarter mainly due to a slide in oil prices, Mr. Kan
said.
However, he expects the performance of the petrochemical
business to improve in the third quarter thanks to an anticipated
recovery in demand from China, especially after the country's
central bank made a surprise interest rate cut decision on Thursday
to bolster economic activity.
Write to djnew.bangkok@dowjones.com