Bangkok, Thailand – In the face of a challenging global economic landscape, SCG, a leading conglomerate in Southeast Asia, has unveiled its “Future Forward” strategic plan. The plan aims to bolster business resilience, enhance agility, and drive sustainable growth in line with its Inclusive Green Growth purpose.
The petrochemical industry, which contributes 39% of SCG’s total revenue, is grappling with a prolonged downturn and volatile crude oil prices. SCG Chemicals is proactively addressing these challenges by augmenting the operational flexibility of its Long Son Petrochemicals (LSP) project in Vietnam. The company plans to diversify its raw material base by incorporating ethane gas, which has historically been 40% cheaper than naphtha and propane. This strategic shift will not only optimize costs but also reduce carbon emissions and by-products.
LSP is well-equipped to accommodate this transition, with existing infrastructure that can readily support ethane gas utilization. The project is slated to commence commercial operations in October 2024, producing olefins and polyolefins to cater to the burgeoning Vietnamese market. Moreover, LSP is poised to support the future production of SCGC GREEN POLYMERTM, a high-value green plastic innovation aligned with global sustainability trends.
Cementing Green Leadership
SCG Cement and Green Solutions is proactively preparing for the global shift towards carbon taxation. The business is not only reducing its carbon footprint but also capitalizing on the growing demand for Low Carbon Cement. SCG has already exported over 1 million tons of this product to the United States and is expanding its reach to other markets. The company is also developing third-generation Low Carbon Cement, which can slash carbon emissions by 40-50% compared to traditional cement.
Innovating for Smart and Sustainable Living
SCG’s Smart Living business is committed to developing low-carbon construction materials that are both aesthetically pleasing and durable. The company is leveraging AI for product design and robotics for manufacturing to enhance efficiency and cost-effectiveness. It is also expanding its footprint in high-growth markets like India and the Middle East.
Furthermore, SCG is pioneering smart solutions under its ‘ONNEX’ brand, which integrates technology to improve various aspects of living. These solutions include energy-saving systems, air quality monitoring, and future offerings for elderly care.
Embracing Digital Transformation
SCG Distribution and Retail is harnessing digital platforms and AI to streamline its distribution network, improve customer experience, and optimize inventory management. The company is also expanding its green construction and housing solutions in high-growth markets.
Powering ASEAN’s Clean Energy Transition
SCG Cleanergy, a key component of the New S-Curve business, is expanding its renewable energy footprint across ASEAN. The company aims to achieve 3,500 megawatts of renewable energy production by 2030. It offers innovative clean energy solutions, including energy storage systems and smart microgrids. SCG Cleanergy is also investing in cutting-edge technologies like Tandem Perovskite solar cells to make clean energy more accessible to the industrial sector.
Prudent Financial Management
SCG is exercising financial prudence by adhering to a strict annual investment budget and optimizing working capital.The company is prioritizing high-potential businesses and reallocating resources to growth areas.
Thammasak Sethaudom, President & CEO of SCG, emphasized the company’s proactive approach to navigating the volatile global landscape. He highlighted SCG’s commitment to leveraging AI, fostering collaboration, and driving sustainable growth through initiatives like the “Saraburi Sandbox” project.
SCG’s “Future Forward” strategy underscores its resilience and adaptability in a dynamic world. The company is well-positioned to navigate challenges, seize opportunities, and create long-term value for its stakeholders through innovation,sustainability, and a customer-centric approach.
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