2. Nature of Business

1.  Company History

  The Company was incorporated as a closely held company on May 16,
  1969, with the initial registered capital of Baht 100 million, and
  later listed on The Stock Exchange of Thailand (“SET”) on April 15,
  1977, and converted to a public company limited in 1993. In 1999, the
  capital was increased to Baht 3,000 million authorized capital,
  divided into 300 million ordinary shares with the par value of Baht 10
  per share, and Baht 2,500 million paid up. Under 2 share purchase
  schemes in 2004 and 2006, 20 million shares, equivalent to 8%, of
  issued shares bought back are held as treasury stock for the purpose
  of financial management due to the Company’s excess liquidity.

  Regarding the business operation, at present the Company has 3 plants
  in Saraburi Province, with total six production lines and total
  capacity of clinker of 12.3 million tonnes per annum.

Major Developments in 2006

Managing Director’s Office

1.  OH&S 12 Golden Rules launch to reinforce OH&S performance

2.  Fatality prevention elements implementation

3.  Six new AFR feeding systems

4.  Development of state-of-the-art AFR laboratory in the region

5.  Signing contract with Amata Facility Services to manage new solid
    waste transfer station at Amata Nakorn. Established presence at
    Amata Industrial Estate through integrated marketing activities

6.  Implementation of AFR stakeholder dialogue, in collaboration with
    German technical cooperation, among key authorities, NGOs and
    academia

7.  Relocation of Head Office to consolidate several office locations
    into one for more effective business operation

8.  Sustainable Development Report launch

9.  Building the Celebrated Arch on Ratchadamnoen avenue to honour HM
    the King’s 60^(th) year accession to the Throne

10. Check Dam Project to build 880 check dams to honour HM the King’s
    80^(th) Birthday

Marketing and Sales

1.  Launch of product innovation, INSEE Dang - new formula

2.  INSEE concrete franchise

3.  Start-up aggregate business for Siam City Concrete

4.  Significant growth of sales of INSEE Mortar Max, reinforced by
    investment in mortar max production

5.  Doctor Cement hotline (+66 2 797 7777 or 1-800-77-5555), new support
    service makes extensive technical expertise available to all
    customers from large developers to local contractors and homeowners

Logistics and Exports

1.  Implementation of fleet management and transportation planning to
    ensure holistic transportation resources

2.  Establishment of GPS monitoring system to track delivery status of
    trucks

3.  Implementing an initiative with trucks of INSEE Transporters to
    replace diesel with NGV

Human Resources and Management Development

1.  Development of Leadership Development Center

2.  Conduct feasibility study in conjunction with AIT on establishment
    of Siam City Cement Technical Training Center

Finance and Controlling

1.  Establishment of Contractor Management and Service Department

2.  Completion of second share buyback scheme

Saraburi Operations

1.  Implementation of compliance platform, a web-base integrated tool
    for management of information and operational audit tool for risk
    management

2.  Scope expansion of PRIM (Product Reliability Improvement and
    Maintenance) to cover quarry heavy main machines

3.  Implementation of condition-based monitoring system for Saraburi
    operations

4.  Scope expansion of MPR (Manufacturing Performance Review), a
    programme to improve production costs, volume, quality and
    environment at all three plants

5.  Upgrading plant master plan

6.  Modernisation of quality control system

7.  Development of Virtual Project Control (VPC) to control and monitor
    CAPEX progress

8.  Establishment of Engineering Design Division into Project Management
    Department to optimise efficiency of CAPEX project execution

Recognitions in 2006

1.  OH&S Green Pyramid certificate from external party

2.  Certificate for Youth Support from Bangkok Metropolitan
    Administration

3.  Certificate for supporting One District One Dream School from
    Ministry of Education

4.  Recognition flags on pleasant plants for five Ready- Mixed Concrete
    plants of Siam City Concrete and certificates on pleasant and
    environmental friendly plants in honour of HM the King’s 60th year
    accession to the Throne to Siam City Cement and Conwood from
    Department of Industrial Works, Ministry of Industry

5.  Safety award from the Ministry of Labour to Ready-Mixed Concrete
    plants of Siam City Concrete

6.  Recognition announcement from Saraburi Governor on amicable
    negotiations with Labour Union

7.  Certificate from Office of Saraburi Social Security for a healthy
    organization

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