SCG reveals operating results for the first quarter of 2024, improved from the previous quarter. with green innovation Effective cost management Including the benefits of bustling tourism and the domestic economy showing signs of recovery. After this, the world economy may be affected by the tense situation in the Middle East. SCG is prepared for volatility. Change the business plan including supply chain management and is ready to continue following the Inclusive Green Growth approach, increasing the proportion of clean energy to reduce costs. Accelerating green innovation to answer global mega trends Aiming to expand business in markets with high growth potential In terms of petrochemical projects, Vietnam is committed to producing plastic pellets for the world market in the third quarter.
Mr. Thammasak Settaudom, President, SCG said that although the world economy is fluctuating The petrochemical industry is in a period of weakness. But SCG can manage costs well. Continuously presenting green innovations to the market As a result, in the first quarter of 2024, there was an income of 124,266 million baht, an increase of 3 percent from the previous quarter, and there was EBITDA (earnings before financial costs, income tax, depreciation, and amortization Overall dividends received from associated companies) were 12,623 million baht, an increase of 16 percent from the previous quarter. And profit for the period was 2,425 million baht, an increase of 3,559 million baht from the previous quarter.
This is a result of developing green innovations to satisfy customers. Functions that meet usage needs Helps reduce carbon which is good for the world, such as low carbon cement. Earth-friendly plastic Sustainable packaging that is reusable and recyclable, evident in sales. SCG Green Choice which stood at 65,782 million baht, accounting for 53 percent of total sales. (Increased from the previous quarter by 1,114 million baht) while also reducing costs well. Use an environmentally friendly production process. Cement factories in Thailand have increased their use of alternative fuels by up to 47 percent. In addition, Siam Cement (SCC) shares have been selected for trading on the Singapore Stock Exchange since April 1. It is a new channel for foreign investors to buy SCC shares and the response has been satisfactory.
SCG hastens to move forward according to the guidelines. Inclusive Green Growth Aiming for green business leaders Along with creating a Net Zero society, developing green innovations to enter the global market. which has high demand and can grow a lot Recently, low-carbon cement (Generation 2) that can reduce carbon by 15-20 percent will be ready for sale. In addition, prepare for the domestic and regional economies that are recovering. By expanding investment in markets with high economic growth such as the SAMEA region (South Asia, Middle East, Africa) as for the Long Son project. Long Son Petrochemicals (LSP) will resume testing of the entire plant. To create readiness to produce high quality plastic pellets in the 3rd quarter.
Packaging business or SCGP Create quality and sustainable growth throughout the supply chain. From using recycled paper raw materials and increasing raw material management efficiency. Promoting comprehensive planting of eucalyptus trees To obtain quality raw materials and help store carbon in an area of 31,770 rai, amounting to 152,181 tons of carbon dioxide equivalent per year. and aims to increase the value of eucalyptus wood through continuous research and innovation. with a budget investment of 3 million US dollars In collaboration with Origin Materials, a leading technology company from the United States, developed “Bio-based Plastic from chopped eucalyptus wood pieces” including increasing production efficiency By increasing the proportion of clean energy use, using machine learning technology and artificial intelligence (Artificial Intelligence) to help increase production efficiency to reduce energy use and costs. and create cooperation with various sectors to prepare for the growing trend of green business.
SCG Business Cement and Green Solution Develop innovations in various types of cement according to the most recent uses. ‘Low carbon cement’ The proportion has increased to 85 percent, and on May 5th, low-carbon cement (Generation 2) will be launched, which reduces carbon dioxide emissions by 15-20 percent, equivalent to international standards. Ready to set goals this year Change the production process of every cement factory in Thailand to low-carbon cement (Generation 2) while also expanding to other low-carbon products, such as ‘Low Carbon Concrete CPAC’ Reduce carbon dioxide emissions in the production process by at least 25 kilograms/cubic meter. Or equivalent to planting 25 trees for every 10 cubic meters of concrete used, maintaining equivalent or better properties than before. ‘Tiger Decor Low Carbon’ Low-carbon ready-made cement For floor casting or wall plastering Emits 38 percent less carbon dioxide compared to Portland cement.
Including serving cement to customers in every segment such as ‘SCG ultra-durable structural cement, low carbon, southern cement formula’ Developed to suit the conditions of the southern region. ‘CPAC seashore concrete and CPAC marine concrete’ For the southern, eastern and western regions Structure protection Buildings near the sea coast ‘CPAC Super Concrete, resistant to salty soil’ For the northeastern region which is an area of saline soil Resists the penetration of chloride and sulfate that accumulate underground. In addition, cement factories in the country have increased the proportion of using alternative fuels to 47 percent, while the Thung Song cement factory has improved its production process to be more efficient. To support the use of alternative fuels
SCG Smart Living Business Focusing on developing construction material products and living solutions that meet customer needs, such as ‘SCG Home High Ceiling’ New house design, modern style There is a usable space that meets the needs of modern living. Add a relaxing corner in the middle of the house With a large hall, Double Space, and still maintaining the quality of construction and living technology of SCG. Heim that customers trust ‘SCG Metal Roof, Klip Lock Model 700’ Designed to be installed with a Clip Lock system, hiding the screw head, eliminating the problem of leakage around the screw head. Preparing for sale in the 2nd quarter ‘SCG Modeena COFF’ Fiber cement wall decoration material Containing 48 percent of recycled materials from the production process and waste materials from other businesses, replacing the use of Virgin Fiber, reducing carbon emissions. But it will still be strong, durable, and beautiful. At the same time, we are preparing to launch a new brand. ‘ONNEX by SCG Smart Living’ (Onnex by SCG Smart Living) for the first time at Architect 67, fully pushing into the business of smart solutions for homes and buildings. By combining innovations that help improve the quality of living. Both aspects of saving energy create clean air and increase safety, such as the solar roof system Home air quality adjustment system and solutions for managing energy use in buildings
SCG Business Distribution and Retail Continuously penetrating new markets with high potential, such as the SAMEA region, which has an average GDP value of more than 70 percent and a total population of more than 40 percent of the world, where SCG International’s office has been established. in Saudi Arabia To manage the supply chain for customers in a complete manner. Through pushing SCG’s entire business network Covers the entire cement construction materials Paper and packaging as well as raw materials and industrial parts It plans to transport goods from Saudi Arabia to many countries around the world. and supply goods from other regions to Saudi Arabia as well. Meanwhile, in the ASEAN market, they produce bag cement products targeting the high-growing Economy Segment, such as the 5-Star Cement brand in Cambodia, the ADAMAX brand in Vietnam, and the Bezt brand in Indonesia. In terms of the domestic retail business It has created awareness for SCG Home by recently holding the Grand Opening of the Khon Kaen branch.
Chemicals Business or SCGC Moving forward to increase the proportion of sales of environmentally friendly plastic innovations ‘SCGC GREEN POLYMER’ fully in order to seize the opportunity for the recovery of the petrochemical industry, which will likely improve in the second half of 2024. In the past quarter, sales were 38,000 tons, with sales for the whole year 2023 being 218,000 tons, in line with the target of 1 million tons. By 2030, it also joins forces with leading partners such as HomePro Manufacturing. ‘Electrical appliances that save the world’ First time in Thailand By bringing used electrical appliances back into a complete closed system recycling process. to turn into high quality recycled plastic pellets, Green Polymer, for production into new products. In addition, under the company Sirplaste SA Portugal has also launched ‘SIRPRIME’ High Quality Odorless PCR HDPE Resin (PCR HDPE) is made from 100% household plastic waste using high-efficiency recycling technology to eliminate odors and foreign matter. It has received European EuCertPlast and RecyClass certifications, while the ‘LSP Vietnam integrated petrochemical project’ is undergoing a thorough reassessment and inspection of the machinery. To ensure safety It is expected to resume testing and be ready for commercial production in the third quarter.
SCG Decor Business or SCGD Highlighting 4 strategies to push sales to grow 2 times by 2030 in response to the ASEAN market gradually recovering, including 1) creating growth for the floor and wall tile surface decoration business; Through various operations such as expanding investment in factories in the southern region of Vietnam. Increase sales of products with high added value and expand distribution channels 2) Expand the sanitary ware business in ASEAN and expand investment in new sanitary ware factories in ASEAN Target sales of sanitary ware to grow 2 times or more than 10,000 million baht. 3) Expand business into related products and services. Reinforcing being a leader in providing integrated services. and increase opportunities to sell related products and 4) invest and become business partners in the company’s main businesses both domestically and abroad In addition, there is an emphasis on investing to increase efficiency and reduce production costs at the same time, such as a project to install a Hot Air Generator to reduce energy costs at two more factories in Thailand, expected to be completed in May. and a project to improve the SPC vinyl tile production line, which will begin producing products for the Thai market from the end of the second quarter with a production capacity of 1.8 million square meters per year.
SCG Cleaner Business Comprehensive clean energy Continuously grow according to the global mega trend that turns to using more clean energy. combined with government support This causes the clean energy market in the country to expand greatly. It currently has a total production capacity of 511 megawatts, an increase of 13 percent from the end of 2023, from cooperation with the public and private sectors to create new electricity trading projects. This year, the target capacity is to increase by 200 megawatts for trading. Electricity and the private sector ‘Battery innovation stores heat from clean energy’ which is a collaboration with Rondo Energy, USA, SCG Cleaner has the potential to market in ASEAN. Therefore, it is an opportunity to bring such technology into the ASEAN market in the first period. And will expand to other regions where it is suitable. Meanwhile, Siam Refractory Industry Co., Ltd. has joined hands with Rondo Energy to develop the production of ‘Thermal Media’ for the first time, which is the main material for use in batteries. Heat storage (Heat Battery) by being able to expand production capacity of heat storage materials up to 12,000 tons per year at the end of last year. To support the expansion of the heat storage battery business
Mr. Thammasak In conclusion, he said “The global economy still faces risks from conflict in the Middle East. But the Thai economy is likely to improve from tourism. foreign investment Approval of the government’s 2024 budget that will begin disbursement in April. and economic stimulus measures from the government, such as reducing transfer-mortgage fees. Income tax deduction and granting loans for home loans for the real estate sector And it is pleasing that the government sector gives importance to green issues. Whether preparing to propose a climate change act within this year Supporting the Saraburi Sandbox Project to become Thailand’s first low-carbon model city. If there is a push for green procurement (Green Procurement), it will serve as a model for other organizations to follow, which will further stimulate the concept of green to become concrete. Can reduce the world’s boiling situation As well as having a positive impact on the national economy in the long run.”
Tags: SCG reveals operating results quarter Ready accept fluctuations Accelerate delivery green innovations market continuously
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