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Business

SCG releases Q3 and 9M 2019 results

Released at: 14:11, 05/11/2019

SCG releases Q3 and 9M 2019 results

Photo: SCG

Lower revenue posted in Vietnam following declines in packaging business.

by Khanh Chi

Thai conglomerate the Siam Cement Group (SCG) has released its Q3 2019 report, revealing that revenue from sales amounted to around $315 million in Vietnam, down 10 per cent year-on-year mainly because of its packaging business.

In the first nine months of this year, SCG posted revenue from sales in Vietnam of $947 million.

SCG in Vietnam has been active in corporate social responsibility (CSR) projects to deliver its promise “Passion for Better”. It recently kicked off its flagship project, “SCG Sharing the Dream”, which will be rolled out in nine cities and provinces nationwide and provide support to 290 students with a total value of $81,600.

SCG’s cement building materials business in Vietnam has also fostered collaboration with Bach Khoa University in Ho Chi Minh City and Quang Binh Agricultural Industrial Vocational College via MoU signings. These initiatives are to leverage local insights for innovation as well as to support local human development via co-research and training programs.

In terms of community development, the Long Son Petrochemicals Co. Ltd has continuously supported charitable housing as well as education programs for local children in southern Ba Ria Vung Tau province.

“Even though SCG’s operating results for the third quarter and the first nine months of 2019 were affected by reduced profits of the chemicals business due to the impact of a petrochemical low cycle, lower product margins, and profits from the major turnaround of an associated company, the chemicals business has placed a considerable emphasis on research and development of innovative and high value-added products and services, especially products developed to fit the principles of a circular economy to support global market demands,” said Mr. Roongrote Rangsiyopash, President and CEO of SCG.

The cement building materials business has remained instrumental in generating revenue for SCG despite relatively regional weaker ceramics markets. However, SCG instills a heightened focus on accelerating retail and distribution businesses, providing customers with greater access to innovative products and services and diverse solutions effortlessly.

In addition, SCG also develops construction solutions to enhance efficiency and provide comprehensive solutions to construction needs as well as strengthening Thailand’s construction industry.

In its packaging business, SCG will continue to develop and improve its strengths and create opportunities for itself by developing packaging with multi-materials (both fiber-based and polymer-based), along with the offering of integrated packaging solutions, efficiency improvements through the use of digital technology, and collaborating with world class business partners.

SCG has recently been expanding its operations through acquisitions with high growth potential in ASEAN, including the acquisition of Visy Packaging in Thailand and PT Fajar Surya Wisesa Tbk. in Indonesia.

The packaging business’s aim is to rapidly enhance overall production efficiency and expand its market coverage and increase its range of expertise in Thailand, Vietnam, the Philippines, Malaysia, Indonesia, and other countries within and outside of ASEAN.

The packaging business’s expansion of its production base in various geographies and of its customer networks will enable it to maintain its position as the leading integrated packaging solutions provider that can address world-class customer needs at all levels of operations, from upstream to downstream.

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