SCT Co, the international trading arm of Siam Cement Group, is focusing on its new recycling and alternative energy businesses in order to raise margins, according to managing director Kalin Sarasin. The company decided to diversify into these higher-margin businesses at the beginning of the year after generating just 2-3 per cent growth from trading cement and construction materials.
In the first seven months of the year, the company reported sales of 17.5 billion baht, an increase of five per cent from the same period last year. Sales for the whole year were expected to reach 27 billion baht, said Mr Kalin. The company’s revenue structure began changing last year, when the majority of earnings came from building products and cement trading.
Of the total revenue this year, 40 per cent would come from alternative energy and recycling, 30 per cent from cement and housing products, with the remaining from international services.
"In the near future, main sales will be driven by these new businesses," Mr Kalin said. Previously, the company engaged in four trading and distribution areas: overseas, cement, building and home products and international services.