6.  Future Projects

Currently, the total economy of Thailand has been gradually growing,
while Asian countries and ASEAN had high growth rate. Therefore, SCG has
a policy to invest in core business in other countries with valuable
return for all stakeholders by focusing on acquisition, merger and
building new plants.

SCG has a policy to efficiently use its resources to maximize the
benefit by arranging continuous repairing and maintenance plans for
plants and machinery to be well prepared for operation with details as
follows:

Chemicals Business

The Siam Cement Group (SCC) has informed the Stock Exchange Thailand on
2 June, 2005 that it has entered into an approximate Baht 8,820 million
(USD 225 million) joint venture in Iran to produce High Density
Polyethylene (HDPE) with the production capacity of 300,000 tons per
year, and is expected to start commercial operation by mid 2008. SCC
will retain a 38 percent stake in the project. This initiative is in
line with SCC’s strategy to gain access into the Middle East region
which contains the worlds lowest cost petrochemicals feedstock, in
response to the ever increasing regional demand of petrochemicals
products, as existing Polyolefins plants are currently running at full
utilization.

SCC has informed the Stock Exchange Thailand on 25 October, 2006 that
both SCC and The Dow Chemical Company (DOW) have finalized the
propylene-rich naphtha cracker investment in Thailand, as a result of
the Board approval at both SCC and DOW. Following the final agreement
with contractors and suppliers, the total cost of the naphtha cracker
will amount to approximately Baht 45,600 million (USD 1.2 Billion). With
commercial operation planned for the first half of 2010, SCC will hold a
67 percent stake in the project, while DOW will hold the other 33
percent stake. The naphtha cracker will have an annual Olefins capacity
of up to 1.7 million tons (ethylene 900,000 tons and propylene 800,000
tons), and other products of up to 700,000 tons. Utilizing proven
Olefins conversion technology which maximizes propylene output, the
cracker will generate 75 percent more propylene than its existing
naphtha cracker. Market outlook for propylene is for continued supply
tightness, as a large majority of the new Olefins plant additions will
be gas-based capacity from the Middle East which will have very little
propylene and by-products capacity.

In addition, SCC will also be moving ahead with its earlier announced
downstream expansion. Integrated into the second naphtha cracker, the
approximately Baht 17,100 million (USD 450 Million) wholly owned
downstream operation with a capacity of up to 800,000 tons will comprise
of HDPE capacity of 400,000 tons, and PP capacity of 400,000 tons.
Slated for first half of 2010 start up, the downstream operations will
emphasize the production of non-commodity products that generates higher
margins, while leveraging SCC’s existing domestic and regional
distribution network.

Paper Business

SPPC still had focused on continuing growth strategy by enhancing the
existing machinery to be more efficient including searching and
furthering for opportunities of business extension with complying with
SCG business policy for “Go regional as a leader in ASEAN”. With
investment amount of Baht 18,000 million for major project of Kraft
paper production capacity extension of 220,000 tons per year in Vietnam
and the one of 200,000 tons per year for Printing Paper in Khon Kaen,
Thailand.

Additionally, there was the Project of Co-Generation Plant at
Prajeenburi for energy saving by utilizing the natural resources.

Moreover, the new business for Shredding Business will be established
focusing on the data security by world class standardized practices. The
services will be provided to expected clients like Banks, Financial
Institution since early next year.

Cement Business

Since 2005, the Company has expanded its business into the region. At
present, the company has been undertaking the construction of integrated
cement plant, with production capacity of 0.85 million tons/ year, at
Kampot province in Cambodia. Total project investment is approximately
USD 80 million, and the project is expected to be completed within 2007.

Distribution Business

Lifestyle Centre, a project of the Company, is a products and innovation
exhibition hall with investment in approximately Baht 400 million. The
project is located on Kaset-Nawamin Rd. and expected to service in the
first quarter of 2008.