Dynamic executive “Mr. Thammasak Sethaudom,” President and CEO of SCG, is a key figure driving the organization with determination and readiness to handle all challenges amid volatile global economic conditions, continuously seeking innovations and new strategies to create opportunities and sustainability for SCG.
In the announcement of performance results for the first 9 months of 2024, SCG reported revenue of 380,660 million baht from sales volumes of SCG Chemicals and SCGP, while sales in the cement and construction-related business groups declined. EBITDA decreased by 10% compared to the same period last year to 38,768 million baht. Profit for the period and profit excluding special items were 6,854 million baht, decreasing by 75% and 46% respectively compared to the same period last year. This decline was due to operating expenses from the Long Son Petrochemicals (LSP) project in Vietnam, which included various operational costs, both cash expenses and non-cash depreciation, combined with reduced margins on chemical products and decreased profit shares from associated companies.
The mounting challenges include severe global economic volatility, slowing global demand for chemical products, increased competition from Chinese products in the domestic market, collateral effects from the Middle East conflict, and the volatility of the Thai baht. These factors have required Mr. Thammasak to carefully analyze and develop prudent short-term strategic solutions for rapid results by increasing agility and focusing on maintaining financial stability. These measures include reducing overall organizational costs by 5,000 million baht by 2025, decreasing working capital by 10,000 million baht by the first quarter of 2025, terminating unprofitable operations, selling assets to enhance flexibility, and emphasizing financial stability while upgrading production efficiency. The company aims to maintain EBITDA at competitive levels continuously through initiatives such as increasing the proportion of alternative fuel use in cement plants in Thailand to 50% within this year, using automated robots for precise and rapid tile production, reducing waste materials, and other efficiency measures.
Long-term strategies will focus on strengthening operations according to the Inclusive Green Growth approach, which represents a business opportunity and competitive advantage, enhancing competitiveness with the global petrochemical industry while reducing carbon dioxide emissions in production processes. The company is accelerating the development and export of green innovations, including SCGC GREEN POLYMER™, low-carbon cement (targeting 100% growth in 2025), and clean energy (targeting growth to 3,500 MW by 2030). Additionally, SCG will invest 700 million USD in ethane to reduce raw material costs in Vietnam’s petrochemical operations by 2027, enabling the receipt of ethane gas from the United States, reducing production costs, and increasing raw material flexibility in production. Most of the investment will be allocated to constructing ethane gas storage tanks and utility infrastructure for receiving raw materials, while SCG continues to invest consistently in ASEAN.
Furthermore, SCG cement products have received international environmental standard certification (Environmental Product Declaration – EPD) across all product groups. The company is extending construction technology with 3D printing, developing materials that can solidify and provide compressive strength similar to special cement, supporting global molding production. Recently, SCG International delivered its first batch of mortar to Saudi Arabia, with plans to expand markets to South Asia, the Middle East, and Africa, supporting the business and construction sectors in these regions. SCG is also promoting environmentally friendly housing industry solutions with the “CPAC Small Mixer Truck,” suitable for construction in limited spaces, and CPAC low-carbon concrete, which helps reduce PM 2.5 dust problems. All SCG cement products have received international environmental standard certification (Environmental Product Declaration – EPD) across all product groups.
SCG Decor is focusing on cost reduction, increasing the proportion of clean energy use, and advancing into the Vietnamese market to create continuous growth. The company is accelerating the conversion of ceramic tile production lines to large porcelain tiles, expanding distribution channels, and offering a diverse range of products to meet market needs. It has also opened the first V-Ceramic store for ceramic tiles and sanitary ware in southern Vietnam. Meanwhile, SCG Cleannergy continues to grow due to increasing domestic demand and promotion of clean energy. The company has collaborated with Kasikorn Bank, signing a green credit facility of 1,500 million baht for investment in Solar Private PPA (Power Purchase Agreement) projects, for various forms of solar installations for organizations and companies, with a total production capacity of 88.5 megawatts, connected through a Smart Microgrid system.
Mr. Thammasak also stated, “During these challenging times, all sectors must unite to help one another. During the recent floods, SCG collaborated with network partners to assist victims by providing survival kits, paper toilets, paper beds, prefabricated restrooms, and setting up kitchens to prepare food for 8 communities. The company also supported materials for the repair of 15 schools in affected areas. The business sector must rapidly adapt its business models to be ready for regulations and measures related to global warming. In addition to organizing the Go Together project with the Federation of Thai Industries to enhance the capabilities of SME entrepreneurs in using environmentally friendly innovations and technologies, SCG has also established the NET ZERO Accelerator Program (NZAP) for SME entrepreneurs and new-generation government executives to understand government policies, trade mechanisms, and access to funding sources for low-carbon businesses. These initiatives aim to equip businesses to reduce costs, increase profits, and develop green industries alongside creating a low-carbon society.”
Published on: Mar 6, 2025