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SCG to revamp core businesses, eyes shift to solutions service enterprise

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SCG is set to revamp three core businesses and equip human resource development to effectively shift from being a manufacturer to a solution and service provider, with an eye of maintaining sustainable business growth in 2020.

SCG unveiled its business strategies to overcome disruptions spawned by looming uncontrollable external factors in 2020, with the accelerated transformation of internal factors right. after announcing its Operating Results for 2019.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, said: “Fluctuations driven by uncontrollable external factors has made a significant impact on businesses globally over the past year. As a result, in 2020, SCG is necessitated to develop comprehensive business strategies aiming at conquering disruptions promptly and maintaining sustainable business growth. With a business transformation plan, the three core businesses will shift from being a manufacturer to a solution & service provider that truly and holistically respond to the diversified and ever-changing customer demand as well as creating high value for the business. People Transformation is also a crucial force to drive change. SCG will strive to empower our people with essential skills, enabling them to insightfully access and understand markets across the region coupled with leveraging digital technologies to respond swiftly to the competitive environment and meet those needs timely.”

Cement-Building Materials Business aims to comprehensively enhance the industry and living sector with products and services incorporating digital technologies. A wide array of solutions includes Construction Solution that provides better performance, faster process and improved cost-saving construction solutions for technician and contractors such as BIM (Building Information Modelling) which helps enhance planning and construction quality through 3D model system, minimizing construction waste; and Living Solution that provide energy-saving, increased comfort, and safety for all ages. Besides, the business has upgraded its Retail Business by integrating physical stores with an online store.

Packaging Business foresees an excellent opportunity to build high growth, especially in the ASEAN as it has emerged as one of the world’s highest growing regions. SCG will accelerate the path to become the packaging solutions provider and be part of customers’ daily lives, coupled with augmenting packaging sales of industrial customers that have substantial growth and demand for packaging materials such as food and beverage, frozen food, canned food, consumer product, electronic product, and e-commerce business.

Moreover, SCG also provides solutions catered to meet special needs, i.e., design and printing solution, smart packaging solution, exhibition and market promotion solutions, and eco-friendly and sustainably sourced products and services, in line with the Circular Economy. The efforts are to hone the competitive edge and maintain the position at the forefront of the region in total packaging solutions.

For investment, SCG will continue delivering solutions, products, and services of 3 core businesses to satisfy customers throughout ASEAN, especially in Thailand, Vietnam and Indonesia, which show high potential and sizeable growth, plus seeking opportunities in emerging market in other regions through collaboration with groups, organizations, institutes, and other sectors at home and aboard to generate business opportunities and enhance the living quality of people, community, society, and environment in line with the commitment of “Passion for Better,” better and faster.”

Meanwhile, SCG subsidiary United Pulp and Paper Co., Inc. (UPPC) celebrated its 50 years in the business last December 2019, with employees and key customers.

As the Philippines’ leading manufacturer of high-quality industrial grade paper for packaging products, UPPC provides the best for all its stakeholders by continuously developing innovation to respond to changes through the years.

In addition, Mariwasa Siam Ceramics Inc., another SCG subsidiary that is the leading ceramic tile brand in the Philippines, improved its operation with the new state-of-the-art kiln, considered as the largest in the country. Towering over 212m in length and capable of producing maximum tile size of 800mm x 1200mm, it also produces an additional output of 5.8 Million sq.m / year.

Furthermore, it reduces 174 tons of CO2 emission and saves up to 3,200 KWH power. As of December 2019, the installation of the equipment has been completed and commissioning is on-going.

2019 Operating Results

In 2019, SCG’s Revenue from Sales of High Value Added (HVA) Products & Services reached 298,436 Million PHP (US$ 5,771 Million), which accounts for 41% of total Revenue from Sales. Spending on Innovation Research & Development totaled 9,432 Million PHP (US$ 182 Million), or 1% of total Revenue from Sales.

SCG’s Revenue from Sales of Q4/2019 reached 178,539 Million PHP (US$ 3,507 Million) due to lower chemicals and packaging paper prices.

SCG in ASEAN (ex-Thailand)

For SCG’s operation in the ASEAN, the Revenue from Sales in Q4/2019 was flat y-o-y, amounted to 51,209 Million PHP (US$ 1,006 Million), which is 27% of SCG’s total Revenue from Sales. This includes sales from both local operation in each ASEAN market and imports from the Thai operations.

As of 31 December 2019, total assets of SCG amounted to 1,067,496 Million PHP (US$ 21,073 Million), while the total assets of SCG in ASEAN (ex-Thailand)amounted 384,169 Million PHP (US$ 7,584 Million), which is 40% of SCG’s total consolidated assets.

In the Philippine market, SCG’s Q4/19 Revenue from Sales amounted to 3,488 Million PHP (US$ 68 Million). For the entire year, SCG recorded 16,077 Million PHP (US$ 311 Million).

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