SCG Ceramics eyes solar opportunities
SCG Ceramics Plc, a subsidiary of SCG Cement-Building Materials, will diversify into the solar energy business this year to increase its earning channels as growth in the Thai ceramic industry in 2021 will remain unchanged amid the pandemic.
Managing director Nampol Malichai expects the renewable energy business will contribute 5% of the company's total revenue.
"SCG Ceramics aims to develop solar energy systems, with power generation capacity of 20-50 megawatts a year for factories, especially those in industrial estates," he said.
The company is focussing on the domestic market since demand is growing and Thailand is also a major production base.
"We also see opportunities overseas, but many countries are still struggling against Covid-19, which poses difficulties in terms of our renewable energy business expansion," said Mr Nampol.
SCG Ceramics admitted the pandemic also strongly affects its core business domestically and overseas.
"It's difficult to predict how the ceramic business will be in 2021. The company is assessing this business and expects to provide more details in the second quarter of this year," he said.
What it perceives at present is the Thai ceramic industry will not be very active in 2021 due to weak purchasing power and the economic slowdown.
SCG Ceramics on Wednesday reported its 2020 revenue had decreased by 10% year-on-year to 9.95 billion baht. However, profit had increased by 150% to 420 million baht.
In the fourth quarter last year, revenue decreased by 5% year-on-year to 2.41 billion baht, while profit increased by 219% to 83 million baht.
In 2019, SCG Ceramics recorded a total revenue of 11.29 billion baht and profit of 168.17 million baht.
The company continues to expand its outlets. It plans to increase the number of branches to 100 domestically within 2024, believing demand in the ceramic market will grow in the future.
Currently, the Thai ceramic market is valued at 30 billion baht a year. Ceramic products used in construction cover an area estimated at around 165-170 million square metres.