Restructuring / Turnaround Strategies Case Study

Thailand's Siam Cement Group: The Conglomerate's Resurgence from the Asian Crisis

Abstract:
Siam Cement Group (SCG), Thailand's largest industrial conglomerate, is the Asian market leader in many diversified businesses. Siam Cement was established by King Rama VI in 1913 and since then it has come a long way in shaping up Thailand's industrial sector. The company was on an expansion bid when the Asian financial crisis hit the region in 1997. Thailand, being one of the worst hit countries, saw the devaluation of the baht, the Thai currency, and thereby the collapse of the economy. To survive the blow, Chumpol NaLamlieng, the President of Siam Cement, formulated restructuring strategies. Their implementation helped the company survive and gradually move towards profits. By 2004, with a stable external economy and growing internal profits, the company was moving ahead towards achieving Chumpol's vision of turning the company into a regional leader and the ASEAN (Association of South East Asian Nations) region into a leading industrialised area.

Pedagogical Objectives:

• To understand (1) the evolution of SCG (2) the impact of the Asian financial crisis on Thai industries
• To discuss the competitive strategies adopted by Chumpol NaLamlieng, and his vision for the future of the company, Thailand and the ASEAN region.

Keywords : Siam Cement Group (SCG); The Asian financial crisis; Thailand; Industrial conglomerate; Restructuring strategies; Association of South East Asian Nations (ASEAN); Divestment of non-core business; Thailands 'industrial powerhouse'; Restructuring / Turnaround Strategies Case Study; King Rama VI; A white elephant in a hexagon; Kingdom of Siam; Crown Property Bureau; Asian market leader; Chumpol NaLamlieng; Devaluation of baht