In 2015, domestic demand for cement remained at the same level as in the previous year, largely attributable to government investments. Whereas cement demand from household users and the private sector retracted, exports saw modest growth compared to last year. Overall, revenue from sales of SCG Cement-Building Materials amounted to 178,988 Million Baht, a decrease of 3% over the preceding year. EBITDA was 24,395 Million Baht, declining 9% year-on-year, and profit for the year was 10,250 Million Baht, a decrease of 22% from the year before.
Market and Competition
- In 2015, domestic demand for building products continued to slow down due to the lack of consumer confidence and declining purchasing power, triggered by sagging prices of agricultural commodities and prolonged drought. Nonetheless, SCG Cement-Building Materials managed to maintain its leadership status in the building product business through the continued development of high value-added products and services to better accommodate consumer needs.
- Demand for building products in the ASEAN region underwent significant growth, propelled by the expansion of the cement and building material markets in many countries, especially Cambodia and the Philippines where the governments promoted various large-scale infrastructure projects. Central to these included the Southern Economic Corridor, a road in Cambodia that connects to other countries in the Greater Mekhong Subregion, and the policy to promote housing development in the Philippines. In Myanmar and Vietnam, the growth was spurred by private investment projects such as factories, housing, hotels, and commercial buildings that grew continuously. However, the construction business in Indonesia was under downward pressure on the back of the delays of several government investment projects.
- Expanded cement capacity in Cambodia by another 900,000 tons per year with an investment of 5,000 Million Baht. Production began in the third quarter of 2015, resulting in a combined capacity of 2 million tons annually in Cambodia.
- Constructed a grey cement plant with an annual capacity of 1.8 million tons at Sukabumi, a city in West Java, Indonesia. With a capital investment of 11,000 Million Baht, the plant started commercial operations in the fourth quarter of 2015.
Human Resources Development
- Developed, designed, and built a learning course that enables all employees to enhance their work efficiency to the fullest in response to the corporate growth and sustainable career advancement of employees both locally and overseas.
- Oversaw and managed a diversified workforce in Thailand and ASEAN to promote a better quality of work life that allows for a safe, fair, and happy work environment with the focus on ongoing organizational and personnel development.
- Encouraged employees in every department to suggest work-related ideas and create HVA products as well as other innovations to serve the needs of customers and all concerned parties.
- Researched and developed SCG Eldercare Solution, a housing innovation for the elderly. This new line of solutions extends from bathroom products to encompass entire housing solutions to ensure convenience and safety. Examples include automatic night light, shock absorption floor, mobility aid for use inside and outside the house, and healthy wall material that absorbs odor and moisture.
- Researched and developed innovations in cement and mortar by manufacturing the Platinum Formula Mortar, using flexible molecule technology that reduces the risk of cracking, thereby minimizing the cracks in the masonry wall and the need for repairs.
- Researched and developed digital printing technology on fiber-cement board, made by an extrusion process, to give the board a beautiful texture similar to those of natural materials but with a stronger, more durable, and longer use, both interior and exterior.
- Researched and developed 3D printing technology on cement including both powder bed printing technology and extrusion printing technology to facilitate construction, reduce waste at the sites, reduce labor, and accommodate the building of free form or architectural designs that cannot be achieved by conventional construction.
- Researched and developed wide-ranging innovative prefabrication solutions with excellent quality and ease of use. For instance, the precast concrete panel provides value added with the smooth surface to minimize masonry and plastering and special formula non-shrink grout that prevents leakage between panel joints.
- Researched and developed a wide array of interior precast concrete wall panels to match various application needs and construction demands. Examples are Walli-T, the precast concrete system that offers excellent strength and minimum panel joints, and the S Wall system that features lightweight, strength, and quick installation. They are ideal for today's construction industry faced with a persistent labor shortage.
Sustainable Development in Business Operations
- Defined SCG Green Port Standard encompassing loading and discharging, shipping, and storing of coals and cement clinker to meet the accepted safety and environmental management standards.
- Stressed the impor tance of the sustainable management of resources and the environment. For instance, CPAC converted the concrete buildups inside the mixer drum of a ready mix truck into materials for use in public works as well as recycling the recovered sand and aggregates. Also the CPAC Roof Tile Co., Ltd. used limestone tailings, by-products of limestone mining in the cement industry, for the 20% sand substitute.
- Enhanced energy efficiency and reduced GHG emissions by replacing the wet grinding process to obtain powder for tile manufacture at Thai-German Ceramic Industry Public Company Limited with a dry grinding process. The efforts reduced energy consumption by 121,092 gigajoules per year, an equivalent of 67,933 tons of GHG per year.
- Set up plans to handle risks from drought at the plants by monitoring the water levels of the plants' raw water sources as well as public water sources on a daily basis while, at the same time, securing more water reserves. For example, The Siam Cement (Kaeng Khoi) Co., Ltd. turned its exhausted shale mine pits into ponds to collect and store rainwater.
- Improved the control system of fugitive cement dust from the main stacks at The Siam Cement (Thung Song) Co., Ltd. by replacing the electrostatic precipitators (ESPs) with new bag filters. At The Siam Cement (Kaeng Khoi) Co., Ltd. on the other hand, the electrostatic precipitators were replaced with hybrid filters that combine ESP and bag filter technology in one.
- Developed various SCG eco value-certified products including:
- K-Cement reduces GHG emissions by at least 20 kg CO2/ton cement. It is produced at Kampot Cement in Cambodia.
- K-Plastering Cement reduces GHG emissions by at least 30 kg CO2/ton cement. It is produced at Kampot Cement in Cambodia.
- Paving blocks integrate Cool Plus technology and use at least 10% recycled
SCG Cement-Building Materials Consolidated Financial Information
|Information from Statements of Financial Position
|Information from Income Statements
|Revenue from sales
|Cost and expenses
|Profit for the year **
* The figures for year 2011 are reclassified.
** Profit for the year attributable to owners of the parent.
*** Profit before finance costs, income tax expense, depreciation and amortization and includes dividends from associates.