THAI conglomerate Siam Cement Group (SCG) said revenues from its Philippine operations in the fourth quarter of 2016 rose 9 percent to P1.75 million ($36 million) as the company expanded its product variety under cement-building materials.
For the second half of 2016, revenue from sales stood at P3.7 million, the company said.
Profit for the fourth quarter was also up 9 percent year-on-year at P16.313 million, driven by better performance of associated companies, SCG President and Chief Executive Officer Roongrote Rangsiyopash said in a statement on Thursday.
Compared to the third quarter, profit decreased by 11 percent partly because of the lower performance of the chemicals business, Rangsiyopash said.
Based on its fourth quarter report for 2016, SCG Philippines had total assets worth P9.74 million, an increase of 1 percent year-on-year.
Thai conglomerate SCG offers a variety of premium products and services to building materials and packaging markets. It has three core businesses—cement-building materials, chemicals, and packaging.
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., SCG Roofing Philippines Inc., SCG Trading Philippines Inc., SCG Marketing Philippines Inc., Green Siam Resources Inc., and Green Alternative Technology Specialist Inc.
For the 2016 performances of SCG’s businesses in Asean, the consolidated 2016 revenue from sales of SCG’s regional production facilities and Thailand exports to Asean countries amounted to P129.79 million ($2.85 million)— representing 23 percent of SCG’s consolidated revenue from sales – down 2 percent year-on-year as a result of strong competition and decreased product prices.
“Plans are on track when it comes to our investment in the Asean region, with a cement plant in Myanmar holding a production capacity of 1.8 million tons a year, and Vietnam’s second kraft paper plant at 243,000 tons a year amounting to a total of 489,000 tons a year,” Rangsiyopash said.
“Commercial production for both plants [has]already begun this 2017, while the cement plant in Laos PDR is in its trial run phase. Moreover, SCG is prepared to face this year’s challenges such as the chemicals’ raw materials costs and rising energy prices. Also, an increasing number of competitors have entered the cement and building materials as well as the packaging business,” the SCG official added.