Thailand's largest industrial conglomerate, Siam Cement Group, will join forces with Andersen Consulting to launch a new IT firm next year. The new firm is intended to serve the IT needs of Siam Cement Group's 100 subsidiaries with core businesses in cement, petrochemicals, and paper. Siam Cement Group also hopes the partnership will help its companies compete globally via the Internet.
With its strong footing in heavy industry, Siam Cement Group looked to Andersen for help in developing its IT and Internet capabilities. Andersen Consulting executives say they want to help Siam Cement Group focus on its core businesses. "Andersen Consulting has been our consultant for about two years," said Tawee Kamborisuth, an operations manager for IT at Siam Cement Group. "Next year we will begin our joint venture."
The joint venture will combine Siam Cement Group's 200 IT employees with Andersen Consulting's technical expertise and hardware.
Siam Cement Group plans to launch a B2B site for its construction dealers throughout Thailand that will feature an online catalogue and a platform for e-commerce.
According to the terms of a memorandum of understanding signed last week, Siam Cement Group and Andersen will each take a 50 percent stake in the new company. First-round investments will total about Bt 100 million (US$2.3 million).
Earlier this year, Andersen Consulting entered into a US$1 billion joint venture with Microsoft to develop e-commerce technology internationally and announced the launch of 17 dot-com incubators across the U.S., Europe, and Asia. Siam Cement Group represents the firm's first Thai joint venture in the IT sector.
Siam Cement Group had total assets of approximately Bt 273 billion (US$6.4 billion) during third quarter this year. The company's subsidiaries operate in numerous markets, including construction materials, electrical products, steel, machinery, automotive products, paper, packaging, and petrochemicals.
