SCG to form JV with Yamato for home delivery
SIAM CEMENT Group (SCG) is diversifying into the home express delivery business through a joint venture with Yamato Transport Company of Japan.
SCG’s board of directors has approved the co-investment with Yamato Asia in SCG Yamato Express Co – a nationwide, full-service logistics provider in Thailand specialising in the business-to-consumer (B2C) and customer-to-customer (C2C) segments of the small-parcel delivery market.The expansion to a new business is the first for the group under Roongrote Rangsiyo-pash, who became chief executive officer at the start of this year.
SCG operates three core businesses – cement and building materials, chemicals and packaging.
The growth drivers for the B2C and C2C segments of the Thai logistics industry are expected to be e-commerce, m-commerce and urbanisation. The growth of the delivery segment is forecast to be in excess of 10 per cent over five years.
SCC’s 65-per-cent stake in the Bt633-million JV will be made through its subsidiary SCG Cement-Building Mat-|erials, which recorded logistics-related sales of Bt14.5 billion in fiscal 2015. Yamato Asia is a subsidiary of Yamato Holdings Co, a conglomerate that is No 1 in express home delivery in Japan.
