-Translation-

CSO-S64-083

April 28, 2021

To President,

The Stock Exchange of Thailand

Subject: Investment projects and feasibility study of Chemicals business restructuring

The Siam Cement Public Company Limited (or "SCC") would like to announce the progress of key investment projects of SCG Chemicals Co., Ltd. (or "SCG Chemicals"), a wholly owned subsidiary of SCC, and the feasibility study of Chemicals business restructuring, as follows:

  1. The capacity debottlenecking project of Map Ta Phut Olefins Company Limited (or "MOC"), a joint venture company of SCG Chemicals and The Dow Chemical Company (DOW), U.S.A., whereby SCC owns a 67% indirect stake and DOW directly and indirectly owns the remaining 33% (as informed to The Stock Exchange of Thailand with calculation of transaction size on 15 June 2018), has successfully completed its construction. The plant has started trial production and is expected to run at full production capacity by May 2021. The project will provide MOC with enhanced feedstock flexibility. Furthermore, by using the latest technology, the project is considered as "Green Process" with high energy efficiency at lower investment cost.
  2. With respect to the strategy on Circular Economy, in order to maximize the potential benefits of resources, reduce global warming and respond to customers' environmental concerns, SCG Chemicals through its subsidiary, SCG Chemicals Trading (Singapore) Pte. Ltd, has signed a Share Purchase Agreement to acquire a 70% stake in Sirplaste-Sociedade Industrial de Recuperados de Plástico, S.A. (or "Sirplaste") on 27 April 2021. The transaction is expected to be completed by the end of 2021. Existing shareholders will continue to hold a 30% stake in Sirplaste and co-manage the company with SCG Chemicals.

Sirplaste is the largest plastic recycling company in Portugal with an annual capacity of

36,000 metric tons. Sirplaste produces and sells recycled plastics to customers in Portugal and Europe. Investment in Sirplaste is one of SCG Chemicals' important steps into plastic recycling business, which will lead to further opportunities in the development and improvement of recycling technology, as well as an expansion of sales channels in European market.

  1. For the future growth opportunity in Chemicals business such as a potential to further expand capacity in ASEAN, SCC is in the process of exploring the feasibility of Chemicals business restructuring, including the possibility of a public offering of SCG Chemicals' shares.

This feasibility study and the business restructuring are expected to be completed by the end of 2022.

The investment in 2) is considered an asset acquisition transaction. The total size of the transaction is less than 15% of the total assets stated in SCC consolidated financial statements as of 31 December 2020, and when combined with those in the past six months prior to the date of this transaction, the total size is 1.15%. Thus, the disclosure of this transaction is not required pursuant to disclosure rule for the acquisition and disposition of assets. This transaction is not a connected transaction. As for the feasibility study of Chemical business restructuring in 3), since it is still under study, transaction size has not been calculated at this time.

Please be informed accordingly.

Yours faithfully,

-signed by-

(Mr. Roongrote Rangsiyopash)

President & CEO

The Siam Cement Public Company Limited

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Siam Cement pcl published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 10:25:36 UTC.