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Investment in the Paper and Building Materials Businesses

BackNov 30, 2006

The Siam Cement Public Company Limited (or ?SCC?) hereby announces that at its Board of Directors? meeting on November 29, 2006, the following investments were approved:

Paper Business Investments:

Reference is made to the July 27/05 disclosure to the Stock Exchange of Thailand, informing of an approximate 1,100 MB investment to expand the paper business? corrugating capacity (sheet board) and converting capacity (corrugated containers) by 120,000 tons and 20,000 tons, respectively. Details of this investment are as follows:

  1. Rachaburi plant expansion (40,000 tons per year of sheet board capacity, and 10,000 tons per year of corrugated containers) totaling 400 MB.
  2. Navanakorn plant expansion (80,000 tons per year for sheet board, and 10,000 tons per year for corrugated containers), totaling 700 MB.

Since the July 27/05 announcement, SCC?s Board has reviewed the above investment plan, and has approved the following details:

  1. No changes to the Rachaburi plant expansion, with start of commercial operation as planned
  2. Navanakorn plant expansion in sheet board of approximately 450 MB has been decreased from 80,000 tons per year to 25,000 tons per year, with commercial start by mid-2008.
  3. Additional Khon Kaen plant expansion of approximately 320 MB in 1) sheet board (55,000 tons per year), with commercial start by mid-2009, and 2) corrugated containers (22,000 tons per year), with commercial start by mid-2008. This investment will allow SCC to capture the continued strong demand and developing trend of higher volume growth in the region.

Building Materials Business Investments:

Investment of approximately 1,250 MB for fibre related products, which will replace and enhance the existing range of traditional products, with details as follows:

  1. Wood Plank and ?Smartboard? Tiles investment of 880 MB, with capacity of 17 million square metre per year, and expected commercial start in mid-2008. This investment in the provinces of Saraburi and Nakorn Si Thammarat will increase SCC?s total capacity to 46 million square metre per year.
  2. Roof Tiles investment of 370 MB, with capacity in 9 million square metre per year, and expected commercial start by the end of 2007. This investment in the province of Saraburi will increase SCC?s total capacity to 47 million square metre per year.