SCGP Creates Distinctive Experience with ‘SCGP-Inspired Solutions Studio’ Behind the Development of Integrated Packaging Solutions for All Requirements
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SCGP unveils the SCGP-Inspired Solutions Studio, creates a distinctive experience in packaging design and development with diverse solutions, and simulates the ambiance of a real place to demonstrate the usage of various types of packaging with the expertise of our professional design and research teams to meet customers’unique demands. Proud to show our total sales of packaging products through our solutions reaching 15 billion baht or over 20% of total revenue for the first 9 months of this year.
Mr.Suchai Korprasertsri, Chief Operating Officer, Consumer and Industrial Packaging Business, SCG Packaging Public Company Limited or SCGP, points out that SCGP has expanded its operations and as a result gained new and diverse groups of customers. Many new trends have also emerged, including high-growth businesses, E-commerce, the expanded consumers base in ASEAN, new consumers’ lifestyles and concerns for the environment, all of which play a role in the development of packaging. The design and development of packaging at present and in the future will have to respond to the specific needs of each customer. SCGP must be swift and adjust its business plan to achieve its Customer-centricity strategy. The company takes this as a challenge to create and develop packaging and services that will fulfill the varied needs of the customers.
In order to create a closer relationship with and the right solutions for our customers, the company has established the SCGP-Inspired Solutions Studio within within the complex of Navanakorn Industrial Estate in Pathumthani. Here, the customers will witness different ways of product presentation and integrated packaging solutions as well as familiarize themselves with SCGP’s various solutions. These include Circular Economy Solutions, Small Lot Solutions, Convenience Solutions, Smart and Functional Solutions, E-commerce Solutions, and Marketing Event Solutions.
The SCGP-Inspired Solutions Studio is divided into eight zones, comprising: (1) The Unbounded Journey presents the genesis of SCGP and its past and present development; (2) The Unique Solutions presents SCGP’s Value Chain covering its full line of packaging products from the beginning to the end as well as its six solutions; (3) The Everyday Life presents packaging products and services that have been created as a result of a detailed study of consumers’ needs, including innovations on packaging, lifestyle products and the design of packaging paper as furniture to demonstrate the various design and production potentials; (4) The Latent Answers simulates the environment of a supermarket with displays of various products packaged with SCGP’s packaging products; (5) The Total E-commerce Solutions displays packaging products for E-commerce businesses; (6) The Logistics Value Creation simulates the various ways packaging products are used for delivery purposes; (7) The Attraction presents modern printing technologies; and (8) The Exhibition presents fully-integrated exhibition and marketing solutions in the style of Green Exhibition focusing on waste reduction and recycling.
SCGP’s strengths lie in our understanding of the customers’ needs and our ability to deliver fully-integrated packaging solutions that answer those needs,” says SCGP’s Chief Operating Officer, Consumer and Industrial Packaging Business.
“Our company has systematically laid down our operational processes, starting from learning the customer’s needs to presenting ideas and solutions, producing sample products until they meet the customer’s specific needs. We have expert staff as well as modern technologies such as our Product and Technology Development Center to innovate various packaging products. Our staff of more 90 researchers and developers dedicate themselves to research and development of an entire spectrum of innovation. Our staff of 36 professional designers are at the customers’ service to help make their wishes come true. Furthermore, we have continually invested in modern technology. Our SCGP-Inspired Solutions Studio will provide an opportunity for our customers to experience our diverse packaging solutions and innovations that we at SCGP have created to respond to multidimensional needs and challenges such as functions, marketing, environmental protection, and added product value.”
Mr. Suchai also adds: “SCGP currently is equipped with fully-integrated packaging products and solutions to serve diverse groups of customers from SMEs to global brand companies. We have generated a total sales worth 15 billion baht or about 20% of revenue in the first nine month of this year.”
“Our SCGP-Inspired Solutions Studio has so far received an impressive customer response with more than 90% of visitors expressing great satisfaction. It’s our belief that our customers not only will benefit from this studio as a center of integrated packaging solutions and innovations but also help inspire and enhance our potential in product design as well as stimulate interest and progress in the packaging industry for the present and the future.”
Idea Paper continues “Idea I do” Campaign
to deliver Paper Bags to Bang Bo Hospital in Samutprakarn Province
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Thai Paper Co., Ltd in SCGP, the manufacturer and distributer of Idea Paper, led by Mrs. Wimol Chantien, Director-Marketing Division and Mrs. Niramol Prewprasurt, Manager-Retail Channels Management Department met Wee Rojanasiraprapa, M.D., the director of Bang Bo Hospital to deliver 9,400 paper bags that made from Idea Paper’s wrapping for help reducing a single-use plastic bag in hospital.
The paper bags are the products from ‘Idea I Do’ campaign, which Idea Paper has been inviting the customers to recycle Idea Paper’s wrapping and put them back into the circular economy system.
Idea Paper already delivered 8,332 bags to Rajavithi Hospital-Bangkok, Nakornping Hospital-Chiang Mai, and Srinagarind Hospital-Khon Kaen. This campaign will be continued till 15th December 2020.
The first rice brand in Thailand! "Royal Umbrella" announces an innovative recyclable rice bag that reduces global warming
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“Royal Umbrella” Rice under Charoen Pokphand Group (CP Group) has recently emphasized its sustainability leadership in packaged rice in a collaboration to improve its recyclable rice bag to be more environmentally-friendly for the first time in Thailand. The two packaging experts; Dow Thailand Group, the world’s leading materials science company, and Prepack, Thailand’s leading flexible packaging producer under SCGP, have joined forces taking the rice bag to the next level utilizing Dow’s sustainable packaging solution called “INNATE™” and down-gauging (thinner but stronger) technology. It is the first brand in Thailand to use this world-class innovation to produce a fully-recyclable rice bag that reduces CO2 emission by reducing plastic resin used and lowering energy in production. The new recyclable rice bag will be launched in Q1 of 2021 in response to consumer’s demand for environmental-friendliness and to address the CP Group’s sustainability goals to completely stop using non-recyclable packaging by 2025.
“As CP Group has committed to the UN’s Sustainable Development Goals (UN’s SDGs), the CP Intertrade’s Royal umbrella brand has aligned with the strategy and announced our commitment to eliminate problematic or unnecessary plastic packaging through redesign and reinvention, change single-use plastic packaging to reusable one, and ensure that 100% of our plastic packaging can be reused or recycled. The brand aims to completely stop using non-recyclable packaging by 2025.
In the past, our rice bags were once unable to be recycled; nowadays, the Royal Umbrella’s plastic bags can be recycled. But we are not stopping here; with this collaboration, we will take it to the next level to make our rice bags thinner but stronger while tackling environmental problems. We aim to reduce CO2 emission, the cause of climate change, by using less plastic resins and lowering the temperatures in bags sealing process.” said Thiti Lujitanon, the Royal Umbrella’s Chief Operating Officer.
The developmental packaging, which will be sold in 2021, will make Royal Umbrella Thailand’s first brand use a multi-layer, mono-material polyethylene rice bag made from Dow’s innovative INNATE™ precision packaging resins and Down-gauging approach. The target is to reduce the bag’s thickness but tougher. Thanks to its abuse-resistant condition, The new packaging reduces CO2 emission, the main cause of climate change, by consuming fewer plastics and energy. In the initial phase, it is anticipated that 300 metric tons of plastics will be reduced, equivalent to eliminating 600 tons of carbon or planting more than 237 acres of forests. The mono-material polyethylene bags are easy to recycle. Still, the Royal Umbrella encourages its consumers to waste separation with “Mue Wised x Won” project by PPP Plastics. Consumers can donate Royal Umbrella’s packaging at more than 300 “Mue Wised x Won” plastic bag drop points in Bangkok and nearby provinces or send it by post. The Royal Umbrella’s bags will become a part of a circular economy’s completed loop and not being left in the environment.
“We are delighted that the packaged rice leader like Royal Umbrella cares for nature and partners with Dow to develop a fully recyclable packaging that consumes fewer resources and mitigates the challenges of climate change using Dow’s INNATE™. The innovative solution makes the packaging thinner but stronger, reducing plastics used and CO2 emission. The collaboration supports Dow’s sustainability targets that aim to “Protect the climate”, “Stop the waste”, and “Close the loop” as well as allows Royal Umbrella to meet their sustainability goals while maintaining the packaging quality.
To solve plastic waste problems sustainably, we need three factors; technology, infrastructure, and brands & consumers’ participation. This partnership has them all. Dow and SCGP have the technology that enables the rice packaging to be recycled easily using the current infrastructure and strengthen by drop points of “Mue Wised x Won” by PPP Plastics. With the participation from No.1 packaged rice brand like Royal Umbrella, who serves millions of families, I believe that we will together reduce the environmental impact sustainably with the consumers’ participation.” said Chatchai Luanpolcharoenchai, Dow Thailand President.
Paradorn Chulajata, Prepack’s managing director, added, “To cope with the growing population and the need for more natural resources, SCGP places importance on the effective use of resources and caring for nature following the sustainable development concept. In our business operations, we drive the Circular Economy principles by maximizing the resources used. We design our products and services to enable brand owners and consumers to be convenient while using fewer materials. The offers must also be reusable or recyclable. In our operations, we improve the production and process to drive the Circular Economy throughout the whole supply chain using less water and energy. We are ready to continue driving the principle from inside-out through our customers and consumers so that all parties aware and join forces to make a better and sustainable society and the planet.”
Consumers can drop Royal Umbrella’s rice bags at the nearest recycling bins or donate them at “Mue Wised x Won” plastic bag drop points in leading department stores such as MBK center, Central, The Mall, Tesco Lotus, and Bangchak gas stations. (A complete list of the drop points can be found at short www.dow.com or www.facebook.com/DowThailandGroup/ ) There is also a “by post” donation channel by sending the used rice bags to “Won Project”, TPBI Public Company Limited, 42/174, Moo 5, Raikhing, Sampran, Nakornpathom, 73210. The bags will be recycled and 5 Baht per Kilogram of plastics will be given to environmental organizations.
SCGP Team of designers won packaging design awards from WorldStar Awards 2020 and ThaiStar Packaging Awards 2020
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Recently, the team of designers from SCGP are winners in “WorldStar Awards 2020”, the world packaging design competition, and also won “ThaiStar Packaging Awards 2020”, the national award, from Propak Asia 2020 held by Department of Industry Promotion at the Grand Hall, Bangkok International Trade & Exhibition Centre (BITEC). This year Mr. Nattapol Rungsitpol, Director-General of Department of Industry Promotion was a guest of honour to present the awards.
The year, SCGP won 3 awards from “WorldStar Awards 2020”. They are;
– Miss Tantip Bopetch from SCG Packaging PLC. won two winning awards in the Luxury Packaging category from “Enjoy the Moon (Mooncake Box 2018)” and “The Auspicious Orange Box 2019”.
– Mr. Wanchana Sritairattana and Miss Kritchaporn Kulrattanarak, designers from Thai Containers Group Company Limited are the WorldStar winners in the Point of Sale category from “Moment of Happiness”.
In addition, team of designers from SCGP also won 11 awards from “ThaiStar Packaging Awards 2020”. They are;
– Ms. Tantip Bopetch from SCG Packaging PLC. won two awards from “Shining Moonlight (Mooncake Box 2019)”. The first award, the President Awards Winner, receives the highest total scores, and the second one is a Winning Award in Consumer Package category.
– Mr. Niti Chumpeth from Thai Containers Group Company Limited received a winning award in Consumer Package category from “Pack 4 for salted egg packaging.”
– Mr. Suchanat Chidthai and Ms. Kritchaporn Kulrattanarak from Thai Containers Group Company Limited received a winning award in Consumer Package category from “ECO Gift for Mother’s Day”, an environmental-friendly packaging for mothers.
– Ms. Thanaporn Worawas from Thai Containers Group Company Limited received a winning award in Consumer Package category from “Treasury of Thai silk”, a packaging for silk.
– Ms. Kritchaporn Kulrattanarak, Mr. Suriya Pimcoat, Ms. Nicharee Reanthong and Mr. Wanchana Sritairattana from Thai Containers Group Company Limited received a winning award in Point of Purchase (POP) category from “TOSSAKAN Floor Display.”
– Mr. Suchanat Chidthai and Ms. Sikin Amornkitcharoen from Thai Containers Group Company Limited received a winning award in Point of Purchase (POP) category from “Christmas Treasure Unit”
– Mr. Pumipak Punthasee, Ms. Nattacha Sorathorn and Ms. Pathitta Sirirerkratana from Thai Containers Group Company Limited received a winning award in Point of Purchase (POP) category from “Sakura Block POP”
– Ms. Onpawee Bavonpattanapaisarn and Mr. Suriya Pimcoat from Thai Containers Group Company Limited received a winning award in Point of Purchase (POP) category from “Sanitizer Counter Display”
– Ms. Onpawee Bavonpattanapaisarn and Mr. Pumipak Punthasee from Thai Containers Group Company Limited received a winning award in ECO Package category from “Electronics “E-Waste Bin”
– Mr. Thitipan Vipuntwarapong from Thai Containers Group Company Limited received a winning award in Transportation Package category “Packaging for Fresh Durian Export”
Congratulations to all SCGP designers for winning the awards with creative packaging designs representing Total Packaging Solutions provider serving the needs to our customers.
Inspired by Hong Kong’s Chinese steamed buns with lava-fillings, Mr. Parin Suksmith founded Phoenix Lava in Thailand. His vision is to serve Phoenix Lava buns to not just consumers across Thailand but also overseas, through franchising.
What is Phoenix Lava?
Mr. Parin reveals that while working in Japan, he and his younger brother spent their free time developing bun recipes and studying the Thai market.
Their study shows people usually buy buns to give to others or prepare as snacks for events. After exploring more than 300 bun shops in Bangkok, the two siblings have concluded that they will position their brand as “Bun of Giving.” Phoenix is chosen as the brand name because it represents changes and new things.
“I am lucky to have a brother and a team who know well about food science,” Mr. Parin says. His brand now offers buns with a great variety of fillings and plus dim sum.
“We have now developed our products to ensure they are ready for microwaving too,” he added.
There are now 10 Phoenix Lava branches in Thailand. Three of them belong to franchisees. Overseas, there are 2 branches in Macao.
Attention to Packaging
Phoenix Lava carefully selects ingredients to create the best taste, and pays serious attention to packaging design with aim to promote brand identity and recognition. The brand uses yellow 37.5-cm-long boxes that fit well into a fridge. Every pack of steamed buns has a label showing its fillings as well.
Caring about its customers, the brand also seeks to ensure that its products taste nice even through delivery services.
COVID-19 Pushes up Sales
During COVID-19 crisis, four branches of Phoenix Lava were closed because they were located inside department stores that had to shut down during lockdowns. To deal with impacts, the brand was quick to set up new branches and implement stringent cost control.
The locations for the new branches are chosen from areas where the brand had never had an outlet before. The strategy is to rent shop houses, which can serve as Cloud Kitchen and accommodate delivery orders. Although these places may not be in the busiest corners of the town, their rent is cheaper. They can attract local customers and support deliveries, which now account for 45 percent of the brand’s total sales.
As for its 2020 goals, Phoenix Lava plans to ensure that through branch-network expansion. Next year, the brand will sell its franchises to operators in provinces such as Chon Buri, Rayong, and Chanthaburi.
EzySteam™: Caring Solution to Pain Point
Mr. Parin says he started working with SCG Packaging because of shared commitment to develop innovative solutions that address customers’ pain points. The first task for the collaboration is to develop microwavable bun bags that can keep the good taste, as microwaving is much more convenient and faster than steaming.
“It takes about six months to develop EzySteam™. The current EzySteam™ bags are our third version. I have much admiration for SCG Packaging’s work. It works hard and constantly checks feedback,” he says.
Phoenix Lava has also used Dezpax, which offers custom-made packaging at reasonable prices. Packaging for most of Phoenix Lava’s new products come from Dezpax.
Generating Revenue from Existing Resources
“SMEs should generate income from existing resources such as assets or abilities. Experiment new things but do not increase cost,” Mr. Parin advises.
“I must say that persons who successfully got out a crisis have potential to fly high. So, SMEs should quickly adjust themselves to the New Normal. You all have my moral support,” he concludes.
World Vision Foundation of Thailand x SCG Packaging 3-in-1 Paper Desk for Opportunities & Sustainability
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During its field trips to remote corners of the country, World Vision Foundation of Thailand found that so many students lacked a “desk” both at school and at home. Children in remote areas, more often than not, had to lie or sit down on the floor and bend their knee to read/write. Such unhealthy positions threatened to cause health problems for children in the future.
WVFT has thus come up with the initial idea of giving versatile desks to impoverished children living in the operation areas throughout the country. The implementation campaign is in collaboration with SCG Packaging who supports their specialist packaging designer to invent an environmentally-friendly and easy-to-carry-around 3-in-1 foldable paper desk which based on the Circular Economy concept. The “3-in-1 foldable paper desk” is made of recycled lightweight yet durable paper and easy for delivery to rural areas. The desk serves with three unique functions – a desk for reading/writing, a box to contain learning materials, and a bag to carry books around. Moreover, the desk is biodegradable and completely recyclable. It comes with a manual on how to use it, plus instruction that is printed on it.
** Box 1 ** World Vision Foundation of Thailand ordered 25,000 foldable paper desks for students across the country and received the support from SCG Packaging valued at 250,000 baht. SCG Packaging handed over 3-in-1 foldable paper desks to 80 students at Ban Tha Makham Wittaya School in Ratchaburi province on 31 July 2020. SCG Packaging designers, along with WVFT management and staff, show students how to assemble the desk and using it.
** Box 2 ** SCG Packaging designers: Mr. Direk Insakul, Ms. Atikan Boonprakong, Mr. Pumipak Punthasee, and Mr. Wanchana Sritrairattana “WVFT challenged us to design a lightweight, easy-to-carry-around, multi-purpose, and versatile desk. Then, we came up using paper as a key material. Ergonomically designed to support children’s physical features, our desk is durable. Children can assemble their desk by themselves. We also integrated learning gimmicks so that children can have fun finding out what they will get from tips given. After the desk is worn out, it can easily go to the recycling process. We are glad to see children enjoy assembling their desk and using it.”
World Vision Foundation of Thailand’s Management team: Ms. Nattaviga Sukphiromkasem, Mr. Athinon Pungsanthia, and Ms. Wilaiwan Jorknew “After we decided to provide desks for children, we had to concern using the desk that lightweight, portable, and eco-friendly. Then, we collaborated with SCG Packaging who is truly professional in eco-friendly manufacturer and concern about the environment, which they kindly agreed to help. WVFT has a very good opportunity working with SCG Packaging in almost one year, from the beginning of planning on concept and design until the 3-in-1 foldable desk is ready to serve children. We are impressed and looking forward to working with SCG Packaging again.”
** Box 3 ** Miss Polaywanday, student in Ratchaburi’s Suan Phueng district “It is very easy to assemble the desk, as an instruction is easy to understand. I am excited to get this desk back home where I will share it with my sibling.”
Miss Supansa, student in Ratchaburi’s Suan Phueng district “I had fun assembling my desk, just like playing a jigsaw puzzle. I made it as a bag first before transforming it into a desk. I helped my friends do it too.”
DATA | SYSTEM | COLLABORATION Getting Stronger & Moving Forward Together
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The new coronavirus disease 2019 (COVID-19) has challenged every sector in society in recent months. Despite the severity of the situation, the business sector has refused to bow down. All enterprises have been trying to adjust themselves to COVID-19 impacts so as to keep their business going. At SCG Packaging Committee on COVID-19 situation has played a vital role in managing the crisis. Members of humankind have reckoned that COVID-19 is “the toughest crisis they have ever seen.”
Structure of the Committee on COVID-19 Situation This committee is composed of representatives from all lines of SCG Packaging, including overseas-based units. These representatives have come together to formulate the best guideline and communicate it to staff in their teams, business partners, and customers for the goal of ensuring business continuity. Mr. Twatchai Wongpaisarn serves as the chair of the Committee. According to him, SCG Packaging has set up Business Continuity Management (BCM) system since 2011 so as to boost preparedness to deal with possible crises such as natural disasters, terrorism, and disruptive political demonstration. In the past, crises affected just specific areas. But this time, COVID-19 outbreak has spread all over the world. “Since the onset of the outbreak, our CEO has issued a clear direction that People Come First,” Mr. Twatchai reveals. “People” are Top Priority Since 2011, BCM system has established the Business Management Team (BMT) and Local Management Teams (LMT) to make necessary preparations and conduct exercises every year. “Because we have a clear-cut system in place, we only need to activate it during COVID-19 crisis,” Mr. Opart Rakkulchon says. “When our assessment suggested our people at our business place in Jakarta had a high risk of contracting the disease, we recalled them to ensure their safety. And thanks to IT support, we can still keep our business running.” Rules of “4Cs” “The first C is Care. We care for our employees, business partners, society, communities, customers, and stakeholders. The second C is Control. We prescribe clear measures to control the situation and manage risks. The third C is Contingency. It is about assessing the situation and planning to deal with what will be coming in advance in order for our businesses to go ahead. The last C is Communication. Leaders must act like ones especially in unusual situations. When you manage a crisis, you need the sense of urgency with care,” says Mr. Twatchai. He explains that with clear directions, local leaders at over 40 work sites of SCG Packaging can apply the rules to their context with support from his work panel for business continuity. Great Factors During such crisis, SCG Packaging has learnt that the following three factors are very important: 1. Fact and Data: Mr. Thanathorn Sitthipol reveals that an internal alert was issued ever since COVID-19 started spreading in Wuhan. When the outbreak in Wuhan widened, more meetings were held to assess the situation and roll out necessary measures such as screenings of people going into/out of the firm’s buildings, guidelines on how to transport persons suspected of having COVID-19, alternative shifts at offices for staff, and work systems over virtual private networks (VPNs). SCG Packaging ranks among the first companies to have implemented “Work from Home” mode. 2. System: Thanks to great infrastructure and solid IT support, SCG Packaging has successfully introduced work system over VPN during the crisis. Because there is a clear system of what to do, the firm can just activate the system to swing into action. 3. Collaboration: As all factories gave full cooperation, preparations for SCG Packaging to secure business continuity during the COVID-19 crisis took just one week. Mr. Thanachai Phuthanadee says that the quick preparations impressively underline SCG Packaging’s strengths. Ms. Lamai Chintananusorn says leaders’ emphasis on BCM is also behind such impressive results. **Box** Mr. Twatchai Wongpaisarn Director – Sustainability Productivity & Innovation Management “It is important to set clear direction and walk the talk. This way, team members will get the message and move toward the same direction.” Mr. Opart Rakkulchon Corporate Human Resources Director “Before COVID-19, we used to believe that our people were well ready for any situation. But this pandemic has made us realize that there is still room for improvements. The good thing is that our people are now stronger, more flexible, and more prepared to deal with whatever will come.” Mr. Thanachai Phuthanadee Information Technology Manager “We need to look ahead and make preparations. If we are not prepared, we will be in trouble when a crisis strikes.” Mr. Thanathorn Sitthipol Assistant Manager – Emergency Response Management “We are fortunate to have had great teams. For example, our HR team takes good care of staff’s health. Our engineering team gives useful advice on ventilation system. Our R&D team advises on UV disinfection and has developed paper-based personal protective equipment for medical workers too. Together, we will go a long way.” Ms. Lamai Chintananusorn Assistant Manager – Business Continuity Management “We have strong leadership at local levels. Backed by our system, our local leaders can act fast. Some might think we were panicked. But in fact, we have handled BCM very professionally. You must lead in a crisis, not just react to it, to ensure business continuity.”
Fest paper straws from SCGP are selected by Thai-Denmark, the first UHT milk that uses Paper Straws from Thai manufacturer for better and more sustainable environment
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SCGP represented by Mr. Wichan Jitpukdee, Chief Executive Officer, Mr. Wichan Charoenkitsupat, Chief Operating Officer – Fibrous Business, and Mr. Suchai Korprasertsri, Chief Operating Officer – Consumer and Industrial Packaging Business signed the MoU to develop paper straws and packaging used for Thai-Denmark milk under the state-run Dairy Farming Promotion Organization of Thailand (DPO) represented by Mr. Suchart Chariyalertsak, Deputy Director-General of DPO. Mrs. Mananya Thaises, Deputy Minister to the Ministry of Agriculture and Cooperatives was the witness of honor at the signing.
Fest paper straws from SCGP are selected by Thai-Denmark, the first UHT milk that uses Paper Straws from Thai manufacturer for better and more sustainable environment
Fest paper straws from SCGP are selected by Thai-Denmark, the first UHT milk that uses Paper Straws from Thai manufacturer for better and more sustainable environment
Fest paper straws from SCGP are selected by Thai-Denmark, the first UHT milk that uses Paper Straws from Thai manufacturer for better and more sustainable environment
With this cooperation, the two organizations have developed paper straws to be used with Thai-Denmark dairy products, responding to the green and eco-friendly trends. The straws decompose in 90 days. Thanks to innovation in the manufacturing, the straws bend and have a strong cutting tip that can penetrate the milk cartons, enabling consumers to drink up the milk in the carton. The straws are manufactured under a certified manufacturing process called GMP-EU Standard. The pilot products will be used with “Thai-Denmark Lactose Free” milk. Thai-Denmark is the first brand that orders paper straws from the domestic manufacturer in Thailand. The product is expected to be launched in the first quarter of 2021 and will reduce the use of 7,000,000 plastic straws, equal to 2.5 tons of plastic wastes.
SCGP also presents Green Carton packaging that reduces the use of paper raw materials and energy in the manufacturing process, but still maintains the strength of the packaging. The product is currently used in the transporting of Thai-Denmark UHT Kid D milk and the school milk in the north-east. In addition, the Multipack, a packaging made of corrugated paper with small flutes, was presented. It is recyclable, strong, and good for high-quality printing, so it is the suitable packaging for aesthetics and functional products. Multipack is, therefore, a packaging for the environment according to the Circular Economy principle. The cooperation is a good start to create norms and elevate packaging in the dairy industry so that it can compete in the world market and respond to sustainable development under circular economy concept. The products are environmentally friendly and help reduce the use of natural resources. These collaborative innovations truly consider to business, social and environmental growth.
SCGP shows resilient 9-mth earnings Continues with regional expansion, business integration, solution based offerings, while demonstrating growth with quality
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SCG Packaging Public Company Limited (SCGP) posted a 22% increase in net profit in nine months of this year, driven largely by the strong demand in the consumer products segment, robust business model, expanding operations by means of merger and partnership arrangements in ASEAN.
The large and diverse customer base has also contributed to the 4,971 million baht in net profit made in the January-September period. The company’s total revenue in the period rose 5% to 69,190 million baht compared to the same period last year.
Wichan Jitpukdee, Chief Executive Officer, SCGP, said the growth achieved by the company is noteworthy from the perspective of the grave economic downturn. SCGP has significantly benefitted from its key clients in the consumer products segment which constitutes about 70% of Integrated Packaging Chain’s sales and showed a continued increase in the demand. The company has had a large customer base in various industries which help spreading risks, according to Mr.Wichan.
The segments which recorded a robust growth in SCGP’s offerings in the nine-month period were the packaging for consumer products, E-commerce and food delivery. Demand from the consumer electronics industry, which slacked earlier due to slowdown in consumers’ purchasing power, has begun to pick up in the third quarter of this year.
Meanwhile, the packaging demand in Vietnam, one of SCGP’s regional markets, has rebounded after the adverse effect of COVID-19 pandemic has eased. SCGP’s business expansion both in Thailand and ASEAN, especially the merger of paper packaging operations in Indonesia and performance and polymer packaging works in Thailand, have resulted in higher revenue and profit for the company.
SCGP has adopted a robust business model which offers a wide range of products and services. Its production capabilities encompass upstream and downstream packaging products which allow the company to meet the specific needs of each customer efficiently.
SCGP also focuses on expanding the market for packaging of consumer products whose demand has continued to rise in any economic conditions given that these consumer goods are essential in a daily life. The business continuity plan and prudent cash flow management have enabled SCGP to grow and cope with the economic fallout from the coronavirus outbreak in the past.
“The performance we achieved in the wake of economic downturn manifests that we are on the right course forward with a quality growth,” Mr.Wichan noted.
Following the successful listing on the Stock Exchange of Thailand, SCGP is moving forward with the expanding investment in the ASEAN region to maintain its leadership in integrated packaging in this region, he added.
Meanwhile, SCGP’s additional production capacity of flexible packaging in Vietnam has started operation. The construction of SCGP’s three other projects worth more than 7.7 billion baht are well underway and due to come on stream next year. These are the schemes to expand the production of packaging paper in Indonesia and the Philippines, and a project to boost output of the flexible packaging in Thailand.
In another development, SCGP’s acquisition of a majority stake in Bien Hoa Packaging Joint Stock Company (SOVI), one of Vietnam’s largest producers of corrugated containers and a company listed on the Ho Chi Minh Stock Exchange, is expected to be completed in December of this year. Currently, SCGP is finalizing the inventory inspection process.
This investment will boost SCGP’s production capacity of downstream packaging from pulp and paper in Vietnam. It also increases the potential to expand the packaging market in the republic, thanks to SOVI’s customer base which mostly comprises large multinational and leading companies in the consumer products business.
“This particular acquisition is in accordance with the company’s strategy to expand investment in the ASEAN region, consolidating the customer base in the consumer product sector and enhancing downstream packaging production capability to strengthen our position as a leader in the integrated packaging industry in ASEAN,” concluded Mr.Wichan.
