The Siam Cement Public Company Limited

Registration Number : Pcl. 258

Business : Holding Company

Main Businesses: Cement, Petrochemical, Paper and Packaging, Building
Products, and Distribution

Head Ofice : 1 Siam cement Road, Bangsue, Bangkok 10800

Telephone : 0-2586-3333, 0-2586-4444

Facsimile : 0-2587-2199, 0-2587-2201

HOMEPAGE : www.siamcement.com

www.cementhai.co.th

The Siam Cement Public Company Limited was established in 1913 by the
Royal Decree of His Majesty King Rama VI (Vajiravudh) on his purpose to
enable Thailand to produce cement and utilize local resource. Since then
the Company has expanded its business depending on the country growth
and has continuously developed into necessary industries vital to the
country development such as Petrochemical, Paper and Packaging, and
Building Products. Many affiliates were founded under the umbrella of
“The Siam Cement Group”. The Group has enlarged its role from domestic
market leader to regional market leader by exporting various products
into the region.

For over 90 years, The Siam Cement Group adheres to transparent
management, disclosed information, mutual benefit to all stakeholders
under the good corporate governance. These reflect in the Company’s
growth, employees’ efficiency, investors’ confidence, trade partners’
confidence, participation and acceptance by people, society, and
communities around the Group. In addition, the Group regularly attains
certifications in the country and from abroad, especially the ISO 9000
(Quality Management), ISO 14001 (Environment Management), TIS 18001
(Occupational Health and Safety Management), all of which most companies
in the Group have always been receiving. Besides, in 2002, The Siam
Cement (Thung Song) Co., Ltd., being in the Cement Business, was the
first cement producer in the world to acquire the Deming Application
Prizes, the ultimate award from the Union of Japanese Scientists and
Engineers (JUSE) for outstanding application of Total Quality Management
(TQM). In 2003, two more affiliates, namely, Thai Paper Co., Ltd. in the
Paper and Packaging Business, and The Siam Refractory Co., Ltd. in the
Cement Business, acquired the Deming Application Prizes. Moreover, the
Group is awarded as the domestic and international leaders in good
corporate governance. For example, from Reuters, in cooperation with
Institutional Investor Magazine from the U.S.A., Finance Asia Magazine,
and SET awards 2003. These reflect transparency, disclosure, and the
“Quality and Fairness” policy that the Group has always been pursued.

The Company has implemented its business policy to emphasize on core
businesses with its competency and higher experience than competitors to
enlarge organization strength and adaptability. During the country
economic crisis from the Baht devaluation, the Company restructured by
reducing its role in non-main businesses, which is now mostly completed,
enabling the Company to regularly conduct its business and be ready for
systematic growth. The main objective has been adding value to
shareholders and the business itself, showing risen profit over the past
few years.

The Siam Cement Public Company Limited acts as the Group holding
company. Management structure comprises strategic business units with
their own holding companies to fully decentralize, efficiently and
effectively conduct businesses, increase management adaptability, and be
able to clearly measure and monitor financial performance.

The Group’s cement products are well known as market leaders in
industrial market and construction business. Selected brands wellknown
in Thailand and neighbouring countries are grey cement in Tiger,
Elephant, and Erawan brands, as well as CPAC ready mixed concrete.

Market leader from the Paper and Packaging Business is Kraft paper or
industrial paper and P&W, both famous for standardized quantity and
quality. It is later value-added into corrugated paper boxes and other
containers, commanding highest market share, with integrated designing
and printing services available. The Business also produces pulp for its
own use as well as printing & writing paper for external market. The
latter’s still expanding demand has been generating large profit for the
Group.

Regarding the Petrochemical Business, it runs both upstream plants,
producing Ethylene and Propylene, and downstream businesses, producing
Polyethylene and Polypropylene. All are converted into assorted forms of
plastic products. The Group has the largest integrated petrochemical
capacity in the country. It has also entered into joint ventures
operation with global renowned partners in manufacturing and marketing
other petrochemical products such as Polystyrene production with Dow
Chemical from the U.S.A., PTA production with Mitsui Petrochemicals from
Japan, and MMA production with Mitsubishi Rayon.

Building Products Business combines both building products and ceramic
products. Major products are roof tiles such as “Tiger” and “Elephant”
fibre-cement roof tiles, “Elephant” monier concrete roof tiles,
“Excella” ceramic roof tiles; “CPAC” paving blocks and floor tiles; and
“COTTO” ceramic wall and floor tiles that are also exported. The Company
also invests in ceramics joint venture abroad in Philippine and
Indonesia. The Building Products Business is the largest manufacturer
and seller of building and decorative products in Thailand.

Distribution Business oversees selling and delivery of products to the
Group’s dealer network. It aims to develop efficient sales marketing and
service systems with new technology in distribution and logistics. Apart
from local distribution, the Business manages import and exports of raw
materials and finished products for affiliates. Regarding the logistics
business, it serves both affiliates and external customers.

In addition, the Group manages its investment in assorted non-core
businesses through Cementhai Holding Co., Ltd. Although investment with
Cementhai Holding considered non-core, they have provided the group with
satisfaction financial return.

The Group established Cementhai Property (2001) Public Company Limited
to manage the Group’s industrial estate, property sales and property
lease. Its objectives are to highest utilize existing assets as well as
develop its potential for professional growth and efficiency.