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|SCG will focus on developing digital technology to improve performance|
This is part of SCG’s development plan outlined at the event to announce the company’s first quarter unaudited operating results.
In the first quarter of this year, SCG reported a sales revenue of VND85.19 trillion ($3.749 billion), an increase of 4 per cent quarter-on-quarter and 2 per cent on-year.
Profit during the period reached VND8.938 trillion ($393 million), a decrease of 1 per cent quarter-on-quarter and 29 per cent year-on-year, mainly from the declining performance of subsidiaries and associates in the chemicals business because of the strengthening Thai Baht and higher costs of raw materials. Last year’s better performance could also be attributed to gains from the sale of investments.
SCG’s sales revenue in the ASEAN, excluding Thailand, in the first quarter recorded 4 per cent growth year-on-year, reaching VND19.46 trillion ($857 million), which is 23 per cent of SCG’s total sales revenue. This includes sales from both local operation in ASEAN markets and imports from the Thai operations. As of March 31, SCG’s total assets amounted to VND426.46 trillion ($18.7 billion), while the total assets of SCG in the ASEAN (excluding Thailand) amounted to VND102.95 trillion ($4.51 billion), which is 24 per cent of SCG’s total consolidated assets.
In Vietnam alone, based on the first quarter report, SCG owns VND36.36 trillion ($1.59 billion) worth of assets. The company reported a sales revenue of VND6.06 trillion ($267 million), which includes sales from both the operations in the country and imports from the Thai operations. This represents an increase of 10 per cent year-on-year mainly from packaging, cement and building material products.
|CEO Roongrote (Right) and Chaowalit, assistant president of SCG Finance and Investment of Siam Cement PCL|
Roongrote Rangsiyopash, president and CEO of SCG, said, “Despite the impact of unfavorable factors including intense competition both at home and in the region, rising raw material costs, and the strengthening Thai Baht, SCG’s first quarter operating results were comparable to the previous quarter. This could be attributable to the company’s passion for better, driving the use of digital technology to develop innovations along with delivering a full range of solutions to address the latent needs of customers across the ASEAN.”
In addition, SCG continues to develop high value-added (HVA) products and services with a focus on enhanced collaboration with customers and leading institutions. For the first three months of this year, sales of HVA products and services totalled at VND33.02 trillion ($1.45 million), an increase of 5 per cent quarter-on-quarter, accounting for 39 per cent of its total sales revenue. The company has invested over VND869 billion ($ 38 million) in R&D, representing 1 per cent of its total sales revenue.
In the latest movements in Vietnam, SCG held the ground-breaking ceremony for its flagship project—Long Son Petrochemicals (LSP) in Long Son Commune, Ba Ria-Vung Tau province. The approximately $5.4-billion project is positioned as Vietnam’s first integrated petrochemical complex that will produce up to 1.6 million tonnes of olefins per year.
Moreover, Nawaplastic Industries (Saraburi) Company Limited (Nawaplastic), a subsidiary of SCG, purchased more shares of Binh Minh Plastic Joint Stock Company (BMP), which is one of the leading producers and sellers of PVC pipes and joints on the Ho Chi Minh City Stock Exchange, increasing its stake to 50.9 per cent. SCG, through Nawaplastic, will support managementto advance company performance to offer quality plastic pipe to the construction market.
SCG, one of the leading conglomerates in the ASEAN, comprises of three core businesses: cement-building materials, chemicals, and packaging. With more than 200 companies under its umbrella and approximately 57,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.
SCG began operations in Vietnam in 1992 with trading and gradually expanded investments to diverse fields, like cement-building materials, chemicals, and packaging.
Today, with a total of 20 companies across Vietnam driven by approximately 8,300 employees, SCG offers a variety of premium products and services.
Available products in cement-building materials include concrete roof and fibre cement boards under the SCG brand as well as COTTO & Prime wall and ceramic floor tiles and COTTO sanitary ware and fittings and bathroom fixtures.
In the packaging business, available products include the IDEA portfolio and corrugated containers, kraft paper, and flexible packaging. In the chemicals business, available products include downstream chemicals products, such as PE&PP, XLPE, and PVC resin and compound.