SCG operations improve in Q1

MANILA, Philippines - The Philippine operations of Thai conglomerate Siam Cement Group improved in the first quarter on the back of stronger sales of ceramic tiles and cement-building materials.

In a statement, the company said its Philippine revenues reached P1.67 billion or $41 million, surging 59 percent from a year ago.

SCG said higher sales were “assisted by the consolidation of its ceramic tile manufacturing company and better performance of Mariwasa Siam Ceramics in SCG cement-building materials businesses.”

The group produced five percent of its ceramic tiles in the Philippines.

SCG president and CEO Kan Trakulhoon said the company is already the world’s largest ceramic tiles manufacturer with a production capacity of 225 million square meters of ceramics in Thailand, Vietnam, Indonesia and the Philippines.

In the first quarter, SCG total profits jumped 47 percent to $295 million due to aggressive growth in all business units and resumption of equity income from associates.

Sales revenues rose six percent due to “higher sales volume in the paper and cement-building materials businesses,” the company said.

“We will invest more in our cement-building materials business because of the potential market growth,” Trakulhoon said.

The parent firm of tile maker Mariwasa Siam Ceramics is banking on the rosy economic prospects to jack up its Philippine sales to a record $170 million this year.

SCG operates in the Philippines through Mariwasa-Siam, constructive and decorative building materials seller SCG Marketing Philippines, roof tile maker CPAC Monier Philippines, packaging paper manufacturer United Pulp and Paper Co. and trading firm SCG Trading Philippines. It is also into a P450-million, 45-megawatt biomass power plant through Green Siam Resources Corp.

In April, SCG consolidated the operations of its ceramic tiles business. In September, it divested its stake in locally listed Mariwasa Siam Holdings Inc.

Early this year, SCG announced that it is spending $70 million to develop new products for the Southeast Asian region.