By Bernie Cahiles-Magkilat ASEAN conglomerate SCG is investing P100 million for a new kiln to modernize its tile manufacturing operation in the Philippines. Jakkrit Suwansilp, president of SCG Cement Building Materials, said they are looking at investing roughly P100 million for the new kiln this year once the SCG Board in Thailand has approved of the new investment of Mariwasa Manufacturing Corp. SCG owns 83 percent of Mariwasa and the rest by its local partner – Coseteng Group. Board approval of the new investment is expected this year to pave the way for the new machine’s commercial operation within the year also at its plant in Sto. Tomas, Batangas, south of Manila. The acquisition of the new equipment, Jakkrit said, is in preparation for Mariwasa’s foray into the production of high-value and bigger-sized tiles. These will also modernize the current tile factory into a state-of-the-art facility and improve its efficiency. The existing factory has production capacity of 10 million square meter of tiles. The expansion project will be able produce 4 million sqm of high value and bigger tiles, including mosaic designed swimming pool tiles. The new equipment should enable the company to produce 60x60 tiles, seen to be the current and future trends in tile application. At present, the Mariwasa factory has a capacity of 10 million sqm of tiles, producing the traditional 30x30 to 40x40 tile sizes. Anuvat Chalermchai, SCG Philippines country director, said project financing will come from Mariwasa. But Jakkrit said they are also looking at taking out loans from local banks to help fund the project. They still have to confirm from the board if it will be 70-30 debt to equity ratio financing. Last year, SCG also invested P30 million for a digital printing machine. SCG operates in three areas in the Philippines: Packaging, cement and building materials, and others. The Thai-owned conglomerate has been continually improving its business in the Philippines. Last year, it also invested $2 million for its Philippine businesses. It registered $345 million (P18 billion) in consolidated revenues last year of which roughly $143 million (P7.5 billion) came from the cement and building materials business.