SCG eyes expansion in Indonesia’s paper industry

SCG, Thailand’s largest building material and petrochemical producer in Southeast Asia, is looking to expand its paper business in Indonesia.
Kan Trakulhoon, SCG’s president and chief executive, said the company is talking with the partners to acquire assets in the paper business in Indonesia.

As a group with five lines of business, namely cement production, building materials, paper and packaging, chemicals and distribution, SCG will compete against powerhouses like Asia Pulp & Paper, Indonesia’s largest paper producer, which is owned by Sinar Mas Group.

SCG owns a 30 percent stake in Chandra Asri, the country’s largest petrochemical producer. It also controls Kokoh Inti Arebama, a distributor of building materials, and Keramika Indonesia Assosiasi, which manufactures building materials.

Last year, SCG invested a total of 532 million USD to build a lightweight concrete block manufacturing plant with a six million cubic metres a cement plant with a 1.8 million-tonne production capacity, and to purchase a ready-mix concrete producer.

Outside of Thailand, South East Asia made up 15 percent of SCG’s business portfolio in 2013. Of that amount, Indonesia alone accounted for more than half. In Indonesia, SCG generated 2.1 trillion Rp in revenue in the first six months of 2013, up 17 percent from a year earlier.-VNA

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