SCG considers expanding facilities in Philippines
Thailand-based Siam Cement Group seeks to strengthen its foothold in the Philippines, as it plans to put up a manufacturing facility for construction materials and an industrial plantation for its pulp business.
These planned projects would cater to not only the domestic market but also SGC’s markets across Asean, Roongrote Rangsiyopash, president of SCG Paper, said in a briefing last week.
SCG is also planning to bring new and high value-added products into the country, reflecting its continued confidence in the local market.
The group operates in the country through the following subsidiaries – United Pulp and Paper Co, SCG Trading Philippines Inc, Green Siam Resources Inc, Green Alternative Technology Specialists Inc, SCG Marketing Philippines Inc, CPAC Monier and Mariwasa Siam Ceramics.
Surasak Kraiwitchai-charoen, international business director of SCG Building Materials Group in Thailand, said the proposed manufacturing facility in the Philippines, which was still under study, was expected to produce at least three types of construction materials – fibre cement boards, smart boards and ceramic tiles.
“If the products are marketable here, we plan to produce those products here. Investments would depend on market size. For example, for fibre cement board, we need (to be able to sell at least) five million square metres to (justify the cost of putting up a facility). The current local demand is 30 million square metres,” he said.
For its paper business, SCG is looking at the viability of setting up an industrial plantation in the country, he said.
“We see the demand to continue to grow. Hopefully, we can use this as a stepping stone to increase the quantity and quality of our production as well,” he said.
According to Surasak, the company met recently with Philippine government officials who were encouraging SCG to put up an industrial plantation for its pulp business.
“That’s something that we like to look at. Pulp business is not just about making paper, as the pulp can be used for making other things, too. In Thailand, we also use pulp for textile and table ware, and construction materials,” he said.
“This plan is still under study because we have to look at the conditions for growth (of the local business) and at the downstream applications. We also have to identify the
best species (for the plantation) and where those species are growing here,” he said. “We have to study what’s working here and what’s not before making decisions.”
