By Bernie Cahiles-Magkilat
ASEAN conglomerate SCG has reported that its Philippine business has generated total sales of $95 million in the third quarter this year or 46 percent higher than the third quarter 2017 on strong demand for cement and building materials.
Roongrote Rangsiyopash, SCG President and CEO, said in a statement that the third quarter sales have brought overall Philippines sales to $273 million for the first nine of the year.
The Philippines showed continuous growth in building materials industry due to on going infrastructure constructions fostered by the government’s “Build, Build, Build” program which has been accelerating development of the country’s economy.
Roongrote reported that the first 9 months of 2018 showed an increase in revenue in all business units due to improved overall market conditions, higher demand of cement and building materials from Thailand and foreign investment projects by public and private sectors, consistent market demands in Chemicals and Packaging business, though the profit was dropped from higher raw materials and energy costs, together with global trade slowdown and asset impairments write-down.
He added that SCG is well aware of the trade war impact to the overall business and the uncertainty from the global economy, while at the same time recognizing the potential for new opportunities. To counter the impact of the trade war, SCG has come up with 6 directions to be implemented at all levels to maintain and further boost the strength of its business.
These are to broaden export opportunities; energy cost management; utilizing digital technology for efficiency improvement; develop innovation and HVA; enhancing working capital efficiency; and a review on investment portfolio and cost.
“SCG is confident that we are able to strengthen our regional business by short-term strategy to enable us to timely adapt to the changing circumstances with the directions of proactive plan, and the long-term strategy that has been built a sustainable growth for our business,” Roongrote concluded.