SCG's Paper Business strives to consolidate its position operating strength to compete in world market

The Paper and Packaging Business of the Siam Cement Group is committed to strengthening its position through the realization consolidation benefit with its joint venture partners in developing business. At the same time, it is also seeking opportunities to invest in related businesses to rival the global industry leaders, bringing more income to the country while reducing imports.


Mr. Somboon Chuchawal, President of SCG's Paper and Packaging Business, said the paper and packaging unit, which is one of SCG's core businesses, has showned a continued growth over the years, particularly exports, which totalled 6,000 million baht in 2009. The Business' strategy focuses on consolidating its position through joint business development with its joint venture partners as well as new investment in related businesses. The efforts are intended to enhance the Business' competitiveness in the regional and global markets, which not only helps bring more income to the country and reduce imports, but also enhances efficiency in production, human resource management, technology, and marketing. It is hoped that this will enable the Thai companies to rival the global industry leaders. Since last year, the Business has joined force with Phoenix Pulp (PPPC) and Thai Cane (TCP) to develop business after it had purchased shares in both companies.

Furthermore, the Business has implemented supply chain management to increase efficiency in production and cost management. Advanced technology such as Web-ordering and E-sourcing / Procurement has also been utilized to enhance operations and customer service to better accommodate customer demand.

For 2010, the Business is expected to perform as well as last year, thanks to its full capacity utilization and relatively healthy prices as in the previous year.

"It is forecast that the demand for pulp and paper in 2010 will continue to grow by 5-6%," said Mr. Somboon.

The Paper and Packaging Business product offerings fall into three distinct categories: pulp and printing & writing paper, industrial paper, and packaging. The Business is now the nation's largest integrated manufacturer of paper products with The Siam Pulp and Paper Public Company Limited functioning as the holding company. Its manufacturing facilities include two pulp and paper plants at Ban Pong, Ratchaburi and Wang Sala, Kanchanaburi as well as eight corrugated box plants throughout the country to quickly respond to customer needs. The business has a combined annual capacity of two million tons of pulp, paper and packaging. It is now the market leader in all three product categories.