SCG moves forwards to be sustainable business leader in ASEAN

Of this amount, $380 million is contribution from ASEAN market outside Thailand. The group moves forward to expand business to become a sustainable business leader in ASEAN and gearing up in anticipation for the ASEAN Economic Community (AEC).

Kan Trakulhoon, President & CEO of SCG said: “As SCG seeks to fulfill the vision to become ASEAN sustainable business leader by 2015, the group continues to expand business across ASEAN countries, especially in strategic countries namely Vietnam, the Philippines and Indonesia. We not only expand businesses and investment network to achieve our business goal, but also gear up for the ASEAN Economic Community (AEC).”

For recent movements in ASEAN, SCG has allocated a budget of approximately $215 million to invest in PT Keramika Indonesia Asosiasi Tbk (KIA), a leading ceramic manufacturer in Indonesia, and PT Kokoh Inti Arebama Tbk (KOKOH), nationwide networks of building materials suppliers in Indonesia. With these new investments, the overall ceramic production capacity of SCG has been raised from 122 million to 149 million square metres, encouraging the group to become one of the world’s highest-capacity ceramic manufacturers and also increase competitiveness of SCG to expand markets of building materials products in Indonesia.

For Vietnamese market, SCG recently invested in corrugated paper container business by acquiring stake in Alcamax Packaging (Vietnam) Joint Stock Company, a leading producer and distributor of corrugated paper containers in Vietnam, to increase competitiveness of SCG in paper and packaging business. With this investment, SCG currently has total capacity of 102,000 tonnes per year within Vietnam and total capacity of 794,000 tonnes per year within ASEAN.

For the building materials market, SCG opened its first showroom in Hanoi in the first quarter of 2011 to offer Vietnamese customers more various choices of premium quality building materials under ‘SCG’ and ‘COTTO’ master brands. This movement has led the group to step firmly into the local market to pragmatically promote branding in Vietnam. Other operation in Vietnam such as ready-mixed concrete, concrete roof tiles, PVC resin, international trading services, SCG continues to grow along with Vietnam economic growth.

At present, total assets of SCG in ASEAN market outside Thailand as of 30 June 2011 amounted to $1.014 billion. The total assets of SCG in Vietnam amounted to $336 million.

SCG began its regional expansion with Vietnam as a strategic country since 1992. Currently, SCG has twelve operations in Vietnam andemploys more than 1,500 local employees.