SCG Logistics cuts revenue growth target
SCG LOGISTICS, a subsidiary of Siam Cement Group, has lowered its revenue-growth target for this year from 12 per cent to 5 per cent because of declining oil prices. Meanwhile, it plans to establish logistics providers in Myanmar and Indonesia to support
“The significant drop of oil prices this year has led to decreased revenues,” Syamrath Suthanukul, managing director of SCG Logistics, said yesterday during the grand opening of the company’s new central distribution centre (CDC) in Wang Noi, Ayutthaya province. This year’s revenue target was previously set at about Bt17.3 billion, up 12 per cent from 2014. But when oil prices decreased by about 6 per cent early this year, the company had to lower its shipping fees, which is likely to result in lower full-year revenues, he said.
The company has therefore adjusted the growth target to 5 per cent, with full-year revenue of about Bt16 billion.
However, the company is expected to earn income from higher demands for transport of cement and other construction materials thanks to the government’s infrastructure-development policy in the remaining months of the year.
In addition to the expansion into Asean countries, SCG Logistics plans to provide assistance for its parent company’s cement business in Myanmar and Indonesia by establishing logistics providers there. These will be finalised by the end of this year. The expansion of the cement business in those countries has been in pipeline since 2011.
Meanwhile, SCG Logistics has invested more than Bt500 million in the construction of its new CDC in Wang Noi, planning a consolidated platform to provide transport services.
“The location of the CDC is suitable for shipping goods to the North, Northeast, West, East, and Central regions of the Kingdom,” Syamrath said. The company will specialise in next-day delivery anywhere in the country for small to medium-size shipments. Also, e-commerce is a priority for the company, and it expects to start providing delivery service for the Lazada online shopping mall this year, he said.
The distribution centre in Wang Noi is equipped with high-technology logistical advancements such as an automated storage and retrieval system. The technology is expected to improve the accuracy of placing orders and distribution processes. Working with its partners in different parts of the country, the company has more than 7,000 trucks ready to deliver goods.
Besides the new one in Ayutthaya province, SCG Logistics has distribution centres in Chiang Mai and Khon Kaen, and owns more than 40 warehouses nationwide.
