SCG predicts B40bn in 2014 trading value

SCG predicts B40bn in 2014 trading value

Demand for clean coal on rise across region

SCG Trading Co, the international trading arm of Siam Cement Group, expects its trading value will grow by 10% to almost 40 billion baht next year, thanks to growing regional trade within Asean.

The demand for clean coal and building materials is rising significantly in the region, said managing director Bunn Kasemsup.

SCG has production plants for building materials in many countries in Southeast Asia for import replacement, with more scheduled to come online in the next few years.

This year, SCG Trading expects its trading value will reach 36 billion baht.

"We have found new products to trade such as automotive parts, commodities, agricultural machines and recycled waste," said Mr Bunn.

Recycled waste including paper and steel scrap have high potential for growth in Thailand in coming years, while the demand for automotive parts and agricultural machines comes mostly from other Asean countries," he added.

In recent years, 33% of its trade value came from materials, 33% from clean coal and the rest from new products.

Mr Bunn said SCG plans to focus on trading products from its plants in Cambodia, Indonesia, Myanmar, the Philippines and Vietnam.

From 2011-13, the group invested US$2.1 billion to develop production plants in five countries for products such as cement, paper, polymers and building materials.

Over the next three years, SCG plans to invest $1 billion in cement plants in Indonesia, Myanmar and Cambodia.

In May, SCG assigned a country chief executive to oversee business in Cambodia, Indonesia, Myanmar, the Philippines and Vietnam.

Speaking at a seminar about the Asean Economic Community yesterday, Mr Bunn said SCG is ready for the establishment of the AEC in late 2015 given the group's experience.

Preparing human resources for business expansion in each country is the most crucial concern for Thai businesses. Regulations and environmental factors should also be taken into consideration, he said.

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