Siam Cement

The case is set in the context of the restructuring of the cement industry in SE Asia, post-1997 currency crisis. Western cement giants had long had ambitions to gain a foothold in this highly profitable industry as part of their globalisation strategies. The 1997 crisis gave them the opening they had been waiting for, and they moved in to make numerous acquisitions in the region, so that they now control almost 60% of total capacity. The case examines the strategic options open to Thailand’s Siam Cement, one of the few strong local companies remaining independent. It looks at the strengths and weaknesses of Siam Cement in pursuing these strategic alternatives.

The case will be taught in conjunction with two others that describe the restructuring process from the viewpoint of the Western acquirees. This will allow discussion of whether a local company can survive in a market that is being restructured by more powerful, global competitors, or whether some form of strategic alliance is inevitable. It can be used to understand what advantages pan-Asian and global competitors can create by cross-border integration, as well as the limitations of these strategies and how national champions can respond.