Southeast Asian business conglomerate SCG is committed to invest more in its subsidiaries, including its unit in the Philippines, this year after recording an overall growth of 7 percent for full-year 2013.
“This year, the company aims to further drive its strong performance by focusing on research and development [R&D], and investing in its subsidiaries, including those in the Philippines,” SCG said after reporting its financial results in 2013.
Kan Trakulhoon, SCG president and chief executive officer, specified that for 2014, SCG heads toward further growth as it continues its expansion in the Southeast Asian region.
“We plan on building our first cement plants in Indonesia and Myanmar, and continue to expand our cement production capacity in Cambodia. Our integrated petrochemicals complex in Vietnam has also made further progress. Meanwhile, other business deals are on the table, supporting our plans for business expansion in the region to maintain sustainable growth,” said Trakulhoon.
In the Philippines, SCG will be investing on its local trading arm SCG Trading Philippines (SCGT) to develop new products such as cleaning chemicals, oil and gas pipes, biomass and agricultural machineries. It will also invest in upgrading machines to increase the production capacity of its refuse derived fuel (RDF).
Similarly, SCG will continue to invest on its paper business in the Philippines through its subsidiary United Pulp and Paper (UPPC), by improving the quality and production process of its linerboards to meet the demand of domestic and export markets.
Trakulhoon added that SCG will continue to develop high value-added (HVA) products, which are durable and well-designed products made with eco-friendly materials and processes.
“Last year, SCG spent $67 million in R&D, which has propelled the sales volume of HVA products to 35 percent. In 2014, we have allocated more than $130 million to develop more of these as part of the company’s goal of green living,” he added.
Based on its unaudited consolidated financial statements, SCG saw an increase of 7 percent year-on-year in its sales revenues amounting to $14 billion, while its profits for the period was $1 billion, an increase of 56 percent year-on-year. The growth is driven by the strong performance of its businesses in cement-building materials, chemicals and paper.
SCG’s subsidiaries in the Philippines also contributed to its overall growth. In the Philippines alone, SCG revenues reached $157 million, an increase of 10 percent year-on-year.
This was backed by the strong performance of its local subsidiaries Mariwasa Siam Ceramics Inc., UPPC, SCG Marketing Philippines and SCGT.