SCG unit ups presence in Vietnam
SCGJWD Logistics (SJWD), a unit of Siam Cement Group (SCG), has acquired International Vietnam Co for 193 million baht to further grow its business in Vietnam amid bright prospects for the logistics industry in Southeast Asia.
Also known as SCG Inter VN, International Vietnam Co has developed a comprehensive network of services via truck and container transport over 10 years, delivering logistics solutions throughout Vietnam and enabling cross-border freight transportation to Thailand, Cambodia, Laos and China.
The company also offers logistics services for the Long Son Petrochemicals complex in Vietnam, operated by SCG Chemicals, the chemical arm of SCG.
“We expect to start recognising revenue from SCG Inter VN in the third quarter of 2024 and believe revenue should stand at around 1 billion baht per year,” said Eakapong Tungsrisanguan, chief financial officer of SJWD.
The investment in SCG Inter VN is a strategic move aimed at bolstering the company’s proficiency in better managing logistics costs and operations.
SJWD believes logistics and supply chain solutions in Thailand and Asean countries will see an improvement in the latter half of 2024, driven by a rise in the transportation and distribution of goods within the business-to-business sector.
The positive forecast stems from increased sales of cement products in Thailand and an increase in cement exports. This trend has favourably influenced the transport of construction materials, including steel, cement and coal, along with other associated freight services.
This development also bodes well for the international logistics service industry.
SJWD reported a 27.2% year-on-year increase in first-quarter revenue, reaching 6.28 billion baht.
This growth is attributed to improved performance in the transport and distribution sectors, which accounted for about 50% of total revenue, and enhanced backhaul management that reduced the number of empty trucks.
The company’s profit for the same period fell by 29% year-on-year to 164 million baht due to higher expenses from short-term loans for new investments and a decrease in equity income from associates and joint ventures.