UPDATE: Siam Cement Mulls Acquisitions in Asean; Focus on Vietnam, Indonesia

--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.

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