2 days ago
SCGC offers digital solutions
SCG Chemicals (SCGC) plans to earn 2 billion baht over 3-5 years from its new business offering digital solutions to customers across industries that want to improve factory operations.
The new business, called a "digital reliability service solution" (DRS), should help the company rack up revenue in addition to earnings from its Long Son Petrochemicals (LSP) complex in Vietnam, which is expected to benefit from the US-Vietnam new trade deal.
"DRS will enhance factory management with the help of digital technology. It can enhance ordinary factory operations to become smart manufacturing," said Sakchai Patiparnpreechavud, chief executive and president of SCGC.
Target customers are companies in oil and gas, petrochemical and food and beverage industries, he said.
DRS helps manufacturers improve machinery maintenance, reduce costs and save time on factory operations, which should increase productivity, said Mr Sakchai.
SCGC is aware of global economic challenges, including the impact of geopolitical conflicts, trade wars and US reciprocal tariffs, he said.
"We will not be affected by the US tariffs because we do not directly export products to the American market," said Mr Sakchai.
"In fact, we will benefit from the tariff policy because our petrochemical factory in Vietnam needs US-sourced ethane."
US President Donald Trump initially planned to slap a 46% tariff on goods imports from Vietnam to ease the US's trade deficit with Vietnam, but after negotiations a rate of 20% was agreed upon, with a 40% levy on transshipments from third countries through Vietnam, provided Vietnam applies no tariffs on US imports, according to media reports.
LSP, which is owned by SCGC, buys ethane, a colourless, odourless gaseous hydrocarbon, from the US as a raw material to reduce its dependence on naphtha, which is a product of fossil fuels.
Using ethane can help the company lower feedstock costs by more than 30% compared with the current naphtha price. SCGC spent money to upgrade LSP so it can use ethane.
LSP is scheduled to start commercial operations between August and September this year.
