Siam Cement Group (SCG) Philippines, a diversified Thai conglomerate operating in the country, registered a 23-percent hike in profit in the first half to $59.3 million, from $48.4 million in the same period last year.
In a statement issued Tuesday, SCG Philippines attributed its strong performance to higher earnings from its individual companies and increased prices of the products it offered.
SCG Philippines has seven companies in the country: kraft paper manufacturer United Pulp and Paper Co. Inc., ceramic tiles and bathroom fixtures producer Mariwasa Siam Ceramics Inc., concrete roof tiles manufacturer CPAC Monier Philippines Inc., SCG Trading Philippines Inc., Green Siam Resources Inc., Green Alternative Technology Specialist Inc. and SCG Marketing Inc.
Since it started operating in the country 18 years ago, SCG Philippines has grown its asset base to $173 million as of end-June, 13 percent higher than the $153 million recorded in the same period a year ago.
During President Aquino’s visit to Thailand last June, SCG president and chief executive Kan Trakulhoon divulged plans to further increase its $200-million investment in the country.
He said the conglomerate planned to bring SCG’s dry cement manufacturing technology here, as well as produce more value-added products to jack up its revenue stream.
Since the existing Mariwasa plant was already running at full capacity, he said SCG was keen on expanding the facilities to boost output. It was likewise considering putting up a P1-billion box plant to support current operations at United Pulp and Paper.
In connection with the planned box plant, SCG Paper president Roongrote Rangsiyopash said the company was looking at putting up its own power plant “to support its factories in the Philippines.”
“It is more efficient and cheaper to put up one power plant with a bigger output than to build two power plants with smaller outputs,” Roongrote said.
Roongrote broached the possibility of building one big power plant that could feed excess output into the grid. In exchange, the company wanted to draw the same amount of power from another part of the grid. This would be covered by a power-swap agreement.