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SCG Logistics targets 20% growth, hits B10 billion in fiscal 2008

Date : 7 March 2008


SCG Logistics Management Co.,Ltd., in SCG Distribution, one of the country’s largest logistic providers, today announced its business direction to increase logistic management efficiency by integrating network and expanding business in ASEAN. The company expected to increase sales growth by 20%, which will hit over 10 billion baht revenue in fiscal 2008.

As part of its branding strategy, the company recently changed its name from Cementhai Logistics Co.,Ltd. to SCG Logistics Management, to be in line with Siam Cement Group (SCG).

Mr. Kajohndet Sangsuban, President of SCG Distribution, said, “Logistics market in 2007 remained steady. The oil price in global market has continued to increase despite the sluggish economy in local market. SCG Logistics therefore developed business strategy to increase efficiency of logistics management by integrating logistics network and system among clients, both Siam Cement Group (SCG) and non-SCG, and expanding network to support SCG’s businesses and other clients in ASEAN. We believe that the cutting-edge technology, efficient systems management and all-set infrastructure network in ASEAN will help boost revenue more than 10 billion baht and increase sales growth by 20% by year end,”

The two key business strategies of SCG Logistics include integrated network and ASEAN business expansion strategy. The integrated network strategy will allow SCG Logistics to connect logistics network and system both between SCG clients. For instant, to deliver cement products of SCG Cement to destination, and then bring back kraft paper material to the paper mill in return trip. This will help lower cost of both companies.

The company also integrated network between SCG clients and other clients, for instant, to deliver goods from paper mill and container mills to consumer package goods’ plant. The clients that employed this service include Red Bull, Dutch Mill, etc. This will help reduce numbers of empty trucks in the return trip and reduce over all cost of the production.

The strategy to expand business in ASEAN is aimed to support ‘Go Regional’ policy of SCG. The ASEAN countries that SCG Logistics has set logistics management infrastructure are Cambodia and Vietnam. In Cambodia, the multi-modal system was applied to support SCG Cement’s plant in Kampot province. In Vietnam, SCG Logistics has developed and expanded logistic network to support both SCG clients and non-SCG clients to strengthen the efficiency of the systems.

“SCG Logistics recently re-branded by changing company’s name from Cementhai Logistics to SCG Logistics Management. The logo has been changed from CTL to SCG Logistics . We hope that this re-branding strategy will help strengthen SCG brand both in Thailand and ASEAN and promote ‘Go Regional’ strategy of SCG,” added Mr. Kajohndet.

SCG Logistics Management Co.,Ltd (CTL) is one of Thailand’s largest logistics companies. In addition to Web-ordering, the company has adopted the warehouse management system (WMS) and the real-time Global Positioning System (GPS) – based tracking system. The company provides services to companies both within and beyond the Siam Cement Group including Betagro, Dutch Mill, Shell, Amway, Red Bull, etc.