Since its inception in 1913, upon the royal decree of His Majesty King Rama VI, SCG has conducted its businesses in tune with the sustainable development approach and continues to do so well into its 100th Anniversary. The Group has learned to adjust to change and developed its organization continually, enabling SCG to survive the wave of crises and challenges, both domestically and internationally. Throughout the years, SCG has pledged to drive innovation in products, services, and processes with a focus on achieving a balance among economic, social, and environmental development under the principles of good corporate governance. SCG commits itself to realizing this noble cause in pursuit of becoming an ASEAN sustainable business leader.
Message from the board of directors, SCG Annual Report, 2012
With revenues of THB (Thai Baht) 407.6 billion or US$ 13.2 billion in 2012 SCG (Siam Cement Group) was the largest industrial conglomerate in Thailand. The company had transformed itself dramatically after the Asian financial crisis of 1997, focusing primarily on its core businesses of cement & building materials, chemicals and paper.
Kan Trakulhoon led the task force that had engineered that transformation. He was appointed the company’s CFO in 2003 and its tenth (sixth Thai) president and CEO in 2006. Kan reaffirmed his commitment to the two key strategic initiatives that he had launched as CFO: (i) transform the company from a commodity to an innovative player with high value added (HVA) products and services, and (ii) diversify its presence across the ASEAN region. Indeed by 2013, SCG had made impressive strides toward both goals. Contributions from HVA products and services had jumped to 34% of revenues in 2012 from a low of 4% in 2004; and revenues from ASEAN operations increased from 3% in 2006 to 8% by 2012. Exports to ASEAN countries accounted for another 10%.
As Kan led the centennial celebrations for SCG, he was aware that there was more to be done before his planned retirement in 2016. Having successfully reset the company’s strategy, he now focused his attention on strengthening its talent pool and organizational culture.