SCG has continuously undertaken business transformation and innovation development to enhance its long-term competitiveness. The Cement and Building Materials Business has continued to demonstrate growth and deliver strong returns, with the cement segment achieving approximately 20% annual growth in net profit. The Chemicals Business, while inherently cyclical with alternating periods of high and low profitability, has adopted strategic measures to mitigate the effects of market downturns. Notably, the Company has invested in a feedstock optimization project at LSP in Vietnam, transitioning to the use of ethane. This initiative, with an investment value of USD 500 million, is expected to yield annual cost savings of approximately USD 250 million, with a payback period of around two years. In parallel, the Company continues to advance the development and expansion of its High Value-Added (HVA) product portfolio.
In addition, SCG has made strategic investments in new businesses with high growth potential. These include the clean energy business under SCG Cleanergy, which continues to exhibit consistent growth; the expansion of the Medical Packaging business, which generated an increase in revenue of 2,700 million Baht; and the Polymer business, which also maintains positive growth momentum.
From a financial management perspective, the Company places emphasis on maintaining a strong financial position by implementing debt reduction measures in parallel with investments in new strategic projects, thereby reinforcing long-term financial stability and resilience.
In the short term, SCG has focused on preserving cash flow to maintain financial strength. The Company has accelerated efficiency improvements, reduced energy costs, promoted HVA products, discontinued non-profitable businesses, upheld financial discipline by reviewing investment plans, and improved the efficiency of working capital management.
In the long term, success of the LSP ethane feedstock transition project is critical. The Company will provide progress updates periodically. Additionally, SCGP is undertaking structural adjustments to enhance its competitiveness in the Indonesian market. SCG is also leveraging artificial intelligence (AI) to support business operations and is reshaping the organization to better align with the expectations and working styles of the younger generation.
SCG serves a diverse customer base and offers products across three value tiers—Good, Better, and Best (HVA)—to align with different purchasing powers. This includes building materials such as solar panels and etc.
The Indonesian economy is currently experiencing volatility in various areas, including politics, geopolitics, and taxation. However, SCG maintains a strong business foundation in Indonesia, particularly in the packaging business, while the cement business continues to progress. The Company remains focused on cost reduction, enhancing competitiveness, and improving efficiency efforts that are being consistently implemented.
The Company has evaluated this matter from multiple perspectives, including the selection of ethane gas as a feedstock. At the time SCG commenced construction of the Long Son Petrochemicals (LSP) plant, the use of ethane—particularly shale gas—was still in its early stages. It was not yet widely available or produced in large volumes, and there were uncertainties regarding production capacity and potential environmental impacts.
Over time, technological advancements and supportive policies from the United States have enabled increased ethane production. Notably, the LSP facility was designed with the capability to accommodate ethane gas as a feedstock, allowing the plant to transition accordingly.