The Board of Directors of The Siam Cement Plc (SCC) has approved a 3,200 MB cement investment in Cambodia, whereby SCC will hold a major stake in the venture, while a local investor will take up the remaining shares. The fully integrated cement plant is expected to commence commercial operation by 2008, and has a production capacity of 0.85 million ton. Cambodia is a developing nation with a large demand of imported cement, in light of its lack of domestic production facilities to support its growing infrastructure and commercial construction demand. Currently, Cambodia imports more than 1.3 million ton of cement annually, implying a per capita consumption of 100 kg/year (relative to Thailand?s per capita consumption of 420 kg/year). The Cambodian investment is a strategic move by SCC to undertake a regional geographical expansion in its existing core businesses. Moreover, this investment will allow SCC to further capitalize upon its existing leading market position in Cambodia, while becoming more competitive due to reduced transportation and distribution costs.