SCG wants to cut costs and suspend certain businesses if profits fall

The company’s president and CEO, Thammasak Sethaudom, predicts that sales will increase by only 3% this year due to global economic volatility, negative sentiment about the petrochemical industry, the conflict in the Middle East, the influx of Chinese products and the volatility of the baht.

The company therefore plans to address these risks by cutting costs by 5 billion baht in 2025 and reducing working capital by 10 billion baht in the first quarter.

The company also plans to sell assets to increase liquidity and improve production efficiency to maintain EBITDA, increasing the consumption of alternative fuels in cement plants by 50% and adopting robotics for production of tiles.

Companies that do not generate profits, such as parcel delivery service SCG Express and Oitolabs Technologies Private Limited (Oitolabs), an India-based digital technology and software company acquired by SCG Cement-Building Materials, will be suspended, with the possible suspension of others to be determined by mid-2025.

According to Krungthep Turakij, SCG Express has suffered losses for five consecutive years, including 305 million baht in 2019, 216 million baht in 2020, 202 million baht in 2021, 247 million baht in 2022 and 184 million baht in 2023.