Siam Cement (SCC) has reached an agreement with Mitsubishi Electric Corporation (MELCO) to purchase MELCO?s remaining 17% stake in Thai CRT Co., Ltd. (TCRT).? This transaction is expected to be completed by the end of Q1/05, and increase SCC?s stake in TCRT from 48% to 65%. With the increased stake, SCC will be required to consolidate TCRT into its financial statements, effective Q1/05. As of Dec 31/04, TCRT possessed asset of 8,000 MB, outstanding debt of 3,600 MB, and equity 2,600 MB. During FY2004, the company generated EBITDA of 1,200 MB and net profit of 200 MB. SCC remains committed to the divestment of its non-core businesses, and the newly consolidated stake in TCRT will allow SCC to be in a better position to restructure the company for possible future divestment. Currently, TCRT operations are running at over 95% utilization, and are forecasted to continue to remain at a high rate during the next 5 years. Although the global CRT industry is facing shrinking demand due to the increased popularity of flat panel displays, TCRT has a strong market niche as the entire industry has already gone through downsizing. TCRT?s performance has significantly improved in FY2004, principally as a result of strong demand in the populated rural emerging market such as China, India, Brazil, and Russia. With the strong cash flow and improved profit margin, the company has been able to deleverage its debt. Established in 1986, TCRT?s production facilities are located in eastern seaboard of Thailand, and have a total annual capacity of 7.6 million pieces of CRT, ranging from 14 to 21 inch display which still commands significant appeal in the mentioned emerging markets.