SCG puts down a marker to flag its big growth targets

October 31, 2011 | 08:01

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Thailand’s SCG has set its long-term vision for Vietnam’s business growth as one of its core regional markets.

The group last week reported its revenues from sales at 7.05 billion Thai baht ($229 million) in Vietnam in the first nine months of 2011, an on-year growth of 15 per cent. Until now, SCG’s total assets in Vietnam have increased 13 per cent to 10.05 billion baht ($326.51 million), due to the investment in corrugated paper container business by acquiring stake in Alcamax Packaging (Vietnam) Joint Stock Company in the second quarter of 2011, said Kan Trakulhoon, SCG president.

“SCG seeks to fulfill the vision to become ASEAN sustainable business leader by 2015, we continue to expand business across ASEAN countries, especially in strategic countries, namely, Vietnam, the Philippines and Indonesia,” Trakulhoon said. SCG began its regional expansion with Vietnam as its strategic hub in 1992. Currently, SCG has 13 operations in the country with more than $470 million of sales and trading volumes annually, and employs more than 2,000 local employees.

Trakulhoon said that the group was also studying additional investment opportunities in Vietnam.
SCG, one of the leading conglomerates in the ASEAN region, comprises five core businesses of SCG Chemicals, SCG Paper, SCG Cement, SCG Building Materials and SCG Distribution.
With more than 100 companies under its umbrella and 34,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.

Trakulhoon disclosed the unreviewed consolidated financial statements of SCG for 2011’s third quarter, which showed revenues from sales of 94.281 billion baht ($3.06 billion), an increase of 19 per cent year-on-year. The profit for the period registered 7.377 billion baht ($239.7 million), up 13 per cent on-year, partly from divestment gains in SCG chemicals.