SCG confident of beating Bt430 bn revenue target

Kan Trakulhoon, president and chief executive officer of the industrial conglomerate, attributed the bright revenue outlook to the high spread of chemical product prices in the second quarter, along with growth in sales of cement and construction materials. The company will gain additional revenue in the fourth quarter this year from the recent takeover of overseas businesses.

He said SCG would revise the revenue target again this year after the second quarter.

The company has continued to explore new investment opportunities in the region as part of its plan to spend Bt200 billion over the next five years, which will boost both asset value and revenue to Bt600 billion each over the next five years from Bt400 billion.

Kan said the company has maintained its investment plan. Though China’s economy is trending to slow down, he believes China’s government could handle the situation. The Asean economy has also continued expanding. He forecast that the revenue contribution from the Asean market to SCG this year would rise to 9 per cent of total revenue from 8 per cent last year. Last year, SCG made revenue of Bt400 billion.

SCG is expected to appoint a financial adviser soon for its plan to set up a petrochemical complex in Vietnam, with Qatari and Vietnamese partners. The initial investment in the project is US$4.5 billion (Bt140 billion). He said the Myanmar government had already gave the green light to SCG to set up a cement production plant in Myanmar with capacity of 1.8 million tonnes. The preliminary cost is estimated at least $400 million.