Siam Cement Group (SCG), one of the leading conglomerates in the Asean region, announced on Tuesday its 2014 sales rose 12 percent year-on-year to $15 billion.
This growth is attributed to exporting strategies to substitute its stagnant domestic business in Thailand.
Profit for the period registered $1.03 billion, a decrease of 8 percent year-on-year because of the non-recurring gain of $54 million in third quarter of 2013, and the $90 million inventory loss adjustments in the chemicals business in fourth quarter of 2014 because of lower oil prices.
“We are confident that we are on the right path this 2015, which will be the golden year for Asean economies. With the starting of AEC and all our investment plans for Asean in place, SCG is now ready to provide products and services that can best serve the rising demands in the entire region,” Kan Trakulhoon, president and chief executive of SCG, said in a statement.
SCG in the Philippines
SCG’s subsidiaries in the Philippines also contributed to its overall growth. In the Philippines, the combined sales revenues of its subsidiaries Mariwasa Siam Ceramics Inc. (Mariwasa), United Pulp and Paper (UPPC), SCG Marketing Philippines (SCGM), and SCG Trading Philippines (SCGT) amounted to a total of $150 million, reflecting a flat growth year-on-year.
Based on fourth quarter of 2014 report, SCG in the Philippines owned $212-million worth of total assets. The company reported fourth quarter of 2014 revenue from sales at $33 million, a decrease of 12 percent year-on-year from the low season.
“Expecting that 2015 will be the golden year for the region, the company will be able to meet the increased market demands with its investment plans in place. The cement plants in Indonesia and Cambodia will start commercial operations by this year, while the cement plants in Myanmar and Laos will start commercial operations in 2016 and 2017 respectively. Meanwhile, the petrochemical complex in Vietnam is progressing according to the plan. These important investments will play significant roles supporting the expanding markets and growing demands of Asean consumers,” Trakulhoon added.
SCG has also allocated a larger research and development budget of $148 million to sustain its position as the leader of innovations in Asean and to continue emphasizing the High Value Added (HVA) products and services that will serve the diverse needs of consumers across the regions.
SCG comprises three core businesses: SCG Cement-Building Materials, SCG Chemicals, and SCG Paper. With more than 200 companies under its umbrella and approximately 49,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.
SCG has been present in the Philippines since 1993 with more than 1,000 employees through its seven subsidiaries: United Pulp & Paper Co., Mariwasa Siam Ceramics Inc., CPAC Monier Philippines Inc., SCG Trading Philippines Inc., Green Siam Resources Inc., Green Alternative Technology Specialist Inc., and SCG Marketing Inc.