“SCG JWD Logistics” plans to take over SCG Inter Vietnam, a logistics and supply chain service provider in the SCC group in Vietnam, expecting to close the deal in June. Knowing the revenue this year, billions of baht, ready to bring the models ‘Cold Storage’ and ‘Automotive Logistics’ in Thailand to invade 3 ASEAN countries including Vietnam, Indonesia and the Philippines. pushing the revenue target this year to 30,000 million baht
Mr. Ban Kasemsub, Co-Chief Executive Officer of SCG JWD Logistics Public Company Limited or SJWD, revealed a strategic plan to expand the logistics business in Thailand and ASEAN. The company is preparing to acquire 100% of shares in SCG Inter Vietnam Co., Ltd. or SCG Inter Vietnam from SCG International Co., Ltd. according to the planned plan. Chain in Vietnam Its main customers are affiliated businesses. The Siam Cement Public Company Limited (SCC) and provide services to general customers. Most recently, it will provide logistics and supply services for chemical products in the Long Son Petrochemicals (LSP) project, the first large-scale petrochemical complex in Vietnam. Invested by SCC Group It is expected that the acquisition of such shares will be completed on June 1, 2024. The company will recognize the initial income from SCG Inter Vietnam approximately 800-1 billion baht per year.
In addition, it plans to collaborate with Transimex Corporation, a local partner, a leading logistics service provider in Vietnam, to jointly expand its business in Vietnam.
As for expanding the scope of services to new businesses, the company has connected the expertise in cross-border transportation services of both sides with Cambodia Railway, a partner from Cambodia. To provide cross-border cargo services from Cambodia to Thailand in the form of a “hybrid model” covering rail and road transport. Which will increase service potential and help reduce costs for customers, as the company is the first operator in Thailand that can provide hybrid cross-border transportation services from Cambodia – Thailand and “Door-to-Door Service” ” (from sender to receiver) reinforces being the First Mover in offering logistics and supply chain services.
Mr. Charvanin Bunditkitsada, Joint Chief Executive Officer of SJWD, said that the company plans to expand existing businesses and proactively provide new services. Through joint ventures and M&A, preparing to bring successful business models in Thailand to expand investment in the ASEAN region. To connect the network of logistics and supply chain services in the region and be able to better meet the needs of customers.
Recently, the company has expanded its business to provide automotive parts transportation services. To support the expansion of the electric vehicle (EV) industry in Thailand, with a plan to establish a joint venture in the country. To operate a business providing transportation of electric vehicle spare parts from China. to complete electric vehicle manufacturing plants and delivered to car dealers across the country It expects to start recognizing partial revenue next year and recognizing full revenue from 2025 onwards.
At the same time, the company is in the process of planning to introduce a cold storage warehouse business model. and automotive logistics to expand investments in Vietnam, Indonesia and the Philippines. Which form will be a shareholding or co-investment with partners in each country by considering that all 3 countries have high potential due to a good economic growth rate This will result in increased demand for food and also serve as a production base for the region’s automotive industry. And plans to expand the temperature-controlled transportation service to other product groups such as medicines and medical supplies, health products, etc., with investment budgets (Only temperature-controlled cargo business) according to the 5-year plan, approximately 450 million baht.
In this regard, SCG Logistics Management Company Limited merged with the company. JWD InfoLogistics Public Company Limited has been established as SCG JWD Logistics Public Company Limited or SJWD since mid-February, with SJWD targeting 2023 total revenue of 30,000 baht. million baht, which will share about 90% of revenue from Thailand and 10% from overseas, with a total investment budget of 3,500-5,000 million baht and expecting to close more M&A deals within this year. As for the long-term goal in 2026 or the next 3 years, there will be an average sales growth of 12% per year, with the proportion of revenue from abroad expected to increase to more than 30%.