SCG moves to cement market leadership position

Siam Cement Group (SCG), a leading Thai conglomerate, has unveiled plans to strengthen operations in the booming Southeast Asian region, including in the Philippines where it has interest in ceramic tile manufacturing through publicly listed Mariwasa Siam Ceramics.

In a statement, SCG said it would spend $70 million for its research and development (R&D) initiatives “to fully strengthen its leadership position in the Asean (Association of Southeast Asian) region.”

Asean is a 10-member regional bloc that has committed to tear down cross-border trade barriers and integrate markets by 2015.

SCG,the second largest company in Thailand based on a ranking by Forbes  Magazine, manufactures and distributes tiles, cement, chemicals, paper and construction materials. With its additional R&D investment, it expects to develop new products that would excite the market.

Kan Trakulhoon, SCG president, said the Thai conglomerate was looking to harness regional opportunities for further growth. He is keen on “expanding and solidifying” the company’s leadership position in the Asean. Regional sales have been growing by 39 percent yearly, reaching consolidated sales of $1 billion.  Asean sales represent 8 percent of SCG’s total sales revenue to date.

In the Philippines, SCG sales reached $142 million last year, a 50 percent growth, shortly after it consolidated the operations of its ceramic tiles business, under Mariwasa Siam Ceramic Inc., in April of last year.

Mariwasa Siam is a major player in the Philippine ceramic tiles manufacturing industry. Established in 1966, it is the first company in the country to manufacture both wall and floor tiles. The current entity, Mariwasa Siam, was born after Mariwasa Manufacturing Inc. and Siam Cement Group entered into a joint venture with the goal of dominating Asia’s ceramic tile industry.

Aside from ceramic tile production, Mariwasa Siam imports sanitary wares and bathroom fixtures to Thailand, Singapore, Korea, Saipan, Guam, Palau, Canada and Africa.

Last year, SCG grew by 11 percent, with sales amounting to $13.11 billion due to higher product prices and volume growth in all businesses. Company profit amounted to $759 million.

Kan expects 2013 to be a better year for SCG which, incidentally, will celebrate its centenary this year. To celebrate the occasion, SCG will open its factories to visitors, and plans to host an exposition which will highlight and demonstrate the innovative products of SCG. The company also intends to host regional seminars, particularly on R&D, as well as sustainable development and publish books on business operations, human resource management and sustainable development.