Announcement of Second IFC Investment in Siam Cement Ten Million Loan for New Expansion Project on December 23, 1975

. / . HOLD FOR RELEASE International Finance Corporation t ,;;1 s H Street. NW. Washington, O.C. 20433, U.S.A. 202-393-6360 IFC Press Release No. 75/23 ·For Use in Morning Newspapers of Tuesday, December 23, 1975 0 Second IFC Investment in Siam Cement $10 Million Loan for New Expansion Project The International Finance Corporation (IFC), an affiliate of the World Bank, is lending $10 million to help finance a $61.7 million expansion program for four companies in the Siam Cement Group, a large industrial g~oup in Thailand. The companies being expanded are The Siam Cement Co., Ltd., The Siam Fibre Cement Co., Ltd., The Concrete Products and Aggregate Co., Ltd., and The Siam Iron and Steel Co., Ltd. The program will add 800,000 tons a year of cement capacity, two cement distribution centers in Bangkok, facilities for loading clinker on ocean-going vessels, 60,000 tons a year of asbestos sheet capacity, and expand steel making and foundry capacities • • The program is already being implemented. The Group has ar~anged loans of $16.5 million from Manufacturers Hanover Trust Corporation, guarabteed under the Export Credit Scheme of Denmark, $2.8 million from Industrial Finance Corporation of Thailand, and suppliers credits of $500,000. IFC's loan, cash generation and local bank borrowings will complete the financing. The increase in asbestos cement sheet and cement production will help meet growing domestic demand and, in the case of cement, take advantage of the export market in the area. The two distribution centers and the ship loading facility are expected to speed shipments and reduce handling and transportation costs. i"he steel phase of the program aims at balancing rolling and melting capacities and at increasing the rolling capacity for pre-stressed concrete wires. The expansion program is expected to contribute to the continued growth of Thailand's basic capital goods industries and non-traditional exports and assist in broadening the country's industrial base. ~ loan is IFC's second investment in the Siam Cement Group. In 1969 the Corporation provided $22.1 million in loan and equity to help finance a $59.3 million expansion. e (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W., Washington D.C. 20433, Telephone (202) 477-5770).