Packaging Business, SCG, announced its 2019 business direction with key strategies to drive business growth with the aim to become the Total Packaging Solutions Provider by establishing more packaging production bases in ASEAN and accelerating innovation and technology development to add value to products, services, and manufacturing process. Packaging Business will also incorporate resource-efficient strategies in line with the Circular Economy called “SCG Circular Way” to integratively fulfill the needs of customers and their consumption in Thailand and ASEAN.
Mr.Tanawong Areeratchakul, President of Packaging Business, SCG, said, “In the past year, the Packaging Business had to cope with price fluctuations of raw materials and fuels on top of the intense market competition. In the meantime, the widening growth in ASEAN yielded new opportunities for the packaging industry. In 2018 alone, the ASEAN packaging market value reached USD 50.5 billion or a growth of 5% while Thailand registered a rise of 3%, parallel to the country’s economic growth rate. The market is expected to proliferate further primarily due to the changing demands for packaging, i.e., increasing preference of sustainable, convenient and harmless-to-health products, while the focus of B2B clients centered around efficiency improvement and cost management. As a result, Packaging Business developed key strategies to handle challenges and identify opportunities to ensure that SCG is ready and compatible with potential changes. To achieve the strategies, Packaging Business, SCG, is introducing a series of upgrades on manufacturing efficiency and competitiveness, quality improvement of products and services to better meet the customer needs as well as being the Total Packaging Solutions Provider and building a sustainable value following the company’s vision.
The three key strategies of Packaging Business, SCG, to achieve opportunities and challenges consist of Boosting Business Growth with Production Base Expansion to satisfy customer needs comprehensively. For the past few years, Packaging Business, SCG, had put investments in widening production bases of high-quality printing packaging and Rigid Plastic Packaging in Thailand, paper packaging production base in Indonesia, and food packaging production base in Malaysia. Moreover, the company has expanded two production bases for “Fest” to support the greater demand for safe and eco-friendly packaging. This year, the company this year will continue to seek new opportunities to expand the business, aiming to establish production units all across the country and ASEAN to support customers’ business growth. This proactive move is to ensure sufficient output capacity to meet the rising demand and to boosting confidence among producers that they will always receive excellent-quality products and services to pursue collective growth.
The next strategy is Creating innovation and Applying Digital Technology by putting an emphasis on research and development efforts to improve products that meet diverse customer needs and staff up skilling to stay relevant in rapid changing dynamics. In addition, the company has implemented an array of technologies to develop the production process throughout the supply chain. Examples include the harnessing of digital technologies “Data Visibility” to manage value chain more efficiently for increased competitiveness and the application of MARs (Mechanization, Automation, and Robotics) to transform existing plants into “Smart Factory.” The company also boosted technological development to support SCG and customer’s existing operations which will deliver a faster, more accurate and more relevant solution to meet the needs of customers and business dynamics.
The strategy of “Conducting Business in line with Circular Economy under “SCG Circular Way” aims to achieve the highest resource efficient utilization. This is another prioritized strategy that Packaging Business strives to accomplish. The company has put strong efforts to develop and design a range of closed-loop paper and plastic packaging that is simple-to-use, eco-friendly, durable and recyclable. Example include high-quality, recyclable plastic film packaging or R-1, manufactured with Multilayer Laminated: Mono Material. The product employs the benefit of anti-humidity, increased strength and highly protective elements. In addition, the company has heightened efficiency of paper and plastic waste recycling management by collaborating with plastic and paper baling network to establish solid recycling system and retailers to streamline waste collection. The company also encourages customers to shift to using appropriate packaging and join CEFLEX, a global collaborative initiative to promote the use of eco-friendly products, services, and solutions on top of developing environmentally friendly packaging for sustainability.”
“As a result of a consistently growing rate of the packaging industry, parallel with national economic growth, the market expansion in Thailand and ASEAN is projected to be similar to the previous year. Packaging Business, SCG, is confident with the strategic direction as the company will be ready to cope with changes and stand firmly as Total Packaging Solutions Provider for customers and relevant parties in Thailand and ASEAN by continually widening growth to other ASEAN countries and spending on product and service’s research and development. The company will also apply Circular Eeconomy in business operations to support mutual and sustainable growth in terms of business, society, and environment,” Mr.Tanawong concluded.