SCG Group, a major conglomerate in Thailand, has laid out its 2026 battle plan amid economic challenges, announcing a revenue target exceeding 500 billion baht. The strategy focuses on elevating competitiveness, with leader Thamsak Sethudom signaling readiness for organizational transformation beyond merely cutting unprofitable business segments, by injecting green technology and innovation to adjust the portfolio toward higher-value products aligned with global megatrends.
The company has allocated a 30 billion baht investment budget to enhance machinery efficiency and advance the comprehensive petrochemical Long Son Petrochemicals (LSP) project in Vietnam, preparing to capitalize on the economic recovery phase.
Thamsak Sethudom, President and CEO of The Siam Cement Public Company Limited (SCC), stated that SCG aims for 1-3% revenue growth in 2026, surpassing 500 billion baht, and expects adjusted EBITDA to exceed the 55.012 billion baht achieved in 2025. He noted that while the global and Thai economies are slowing, positive signals are emerging.
For example, the chemicals business is expected to stabilize due to reduced global new production capacity and weakening raw material prices. Ongoing government economic stimulus and investment measures are expected to benefit cement and construction product-related businesses.
Meanwhile, packaging demand continues to grow due to rising consumption in ASEAN countries with expanding economies, increasing the need for paper packaging. Additionally, Vietnam's sustained economic growth supports investment and market expansion.
The investment budget of approximately 30 billion baht is divided into about one-third for maintenance and machinery efficiency improvements, with the remainder dedicated to ongoing projects, especially the comprehensive Long Son Petrochemicals (LSP) project in Vietnam, expected to complete by 2027, and energy-saving initiatives.
Regarding the petrochemical business, although the price spread remains low, the company decided to continue operating LSP machinery to retain customers, test systems, and develop employee skills, which is considered better than halting production.
Additionally, the company emphasized that its transformation will not just involve shutting down unprofitable operations but will enhance competitiveness and effectively utilize technology.
Thamsak explained that progress on divesting non-performing or loss-making businesses unrelated to the core strategy, which has been ongoing over the past year, is nearly complete as planned.
Going forward, the approach will not be to close operations entirely but to "transform business models" by consolidating smaller production bases in various locations such as Thailand, Vietnam, and Indonesia into larger units. This consolidation aims to optimize investment in technology and robotics, thereby enhancing competitiveness against major global players.
Furthermore, the company will focus on asset management by selecting less critical assets within the portfolio to convert into cash. The funds will be reinvested in key projects, such as upgrading the LSP petrochemical plant with a budget of about 16 billion baht over the next three years, ensuring strong progress without increasing debt.
The strategies to accelerate business capabilities in 2026 include:
1. Cement and Construction Products Business For SCG Cement and Green Solutions, SCG Smart Living, and SCG Distribution and Retail, efforts will focus on boosting competitiveness and reducing costs through renewable energy, alternative fuels, and AI in production and services. They will develop low-carbon construction materials and high-performance concrete, adjust the portfolio toward high-value products (SVP-HVA-Green) to support the Net Zero trend.
They will also expand repair, renovation, and energy-saving services, adjust sales strategies through nationwide wholesale networks, localize retail, and upgrade logistics systems.
Meanwhile, the business under SCG Decor Public Company Limited (SCGD) will focus on reducing energy costs, increasing Grace Porcelain tile production capacity, and advancing the Vietnam and export markets to support growth domestically and internationally.
2. SCG Chemicals Public Company Limited (SCGC) will focus on investing in urban and infrastructure projects in Vietnam, advancing the LSP project, improving operational efficiency and cost management, enhancing raw material flexibility, increasing the share of high-value-added (HVA) products to over 60%, expanding green polymers and industrial solutions, reducing long-term volatility, and aligning investment portfolios with strategy.
3. SCG Packaging Public Company Limited (SCGP) plans to drive growth and profit through mergers and partnerships, business expansion, and machinery efficiency improvements in Vietnam, Indonesia, and India. They will invest in consumer-connected packaging, adopt robots, cobots, and automation to reduce costs, enhance integrated solutions, and develop eco-friendly packaging innovations to reduce greenhouse gas emissions.
4. SCG Clean Energy Company Limited will accelerate ongoing projects, improve performance of operating projects, strengthen collaboration with customers and partners, develop cost-effective clean energy solutions, continue developing a Smart Grid Platform using Generative AI to support Direct PPA, and develop commercial Heat Battery technology to reduce costs and enable practical industrial use.
"Although 2026 will still face challenges from the global and Thai economies, SCG will continue strengthening its financial foundation, focus on enhancing competitiveness across all businesses, confront all challenges, and seek new growth opportunities. We are confident in being 'intense - resilient - strengthened - and in control,'" Thamsak concluded.
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