SCGD Accelerates Competitiveness with Over THB 1.6 Billion Investment in Vietnam and Thailand Production Bases to Drive Regional Optimization

SCG Decor Public Company Limited (SCGD), the leading surface decoration materials company in ASEAN, is moving forward with strategic investments across Vietnam and Thailand totaling more than THB 1.6 billion. The initiative aims to address global fuel price volatility impacting energy costs, strengthen competitiveness and profitability, reduce production costs, and improve manufacturing efficiency for ceramic tiles and High Value Added (HVA) products — positioning the company to better compete against imports under its holistic Regional Optimization strategy. The investments are designed to sustain continuous business growth in Vietnam while reinforcing SCGD’s market leadership in Thailand over the long term.

Two Core Investment Projects

Project 1: Technology and Machinery Upgrade with Automation to Expand Production Capacity in Vietnam

This project involves upgrading technology, machinery, and automation systems at PRIME Pho Yen Joint Stock Company (“Pho Yen”) — a subsidiary of PRIME Group Joint Stock Company (PRIME), which is wholly owned by SCGD — located in northern Vietnam. The existing ceramic tile production line with an annual capacity of 6 million square meters will be converted into a Glazed Porcelain tile production line with a capacity of 6.6 million square meters per year, at a total investment of approximately THB 660 million, with completion targeted by Q2 2027.

Upon completion, PRIME’s total Glazed Porcelain production capacity will rise to 33.4 million square meters per year, representing 40% of total production capacity — up from 32% at the end of 2026. The project is designed to meet growing demand for Glazed Porcelain tiles in the Vietnamese market, expand export opportunities across multiple regions by leveraging PRIME’s cost competitiveness, and support the broader surface decoration business growth strategy across ASEAN.

Project 2: Production Line Consolidation and New Automated Glazed Porcelain Line Investment in Thailand

Undertaken by SCG Ceramics Public Company Limited (SCGCE), a subsidiary 99% owned by SCGD, this project carries a total investment of approximately THB 957 million and is scheduled for completion by Q3 2027.

The project consolidates ceramic and Glazed Porcelain tile production lines from multiple SCGCE factories into a single facility to improve operational efficiency, reduce per-unit production costs, and lower overall manufacturing and administrative expenses. A new Glazed Porcelain production line will also be installed to comprehensively serve market demand — including HVA products featuring greater tile variety and larger formats.

Upon completion, SCGCE will have a combined ceramic and Glazed Porcelain tile capacity of 44.5 million square meters per year, a level well-suited to meet current market demand. This is expected to significantly strengthen SCGCE’s profitability and competitive position against imported products, while sustaining the company’s market leadership and market share in Thailand.

The consolidation is expected to recognize associated expenses of approximately THB 679 million in late Q2 2026, the majority of which are non-cash and one-time in nature. Notwithstanding these charges, the project’s payback period and Internal Rate of Return (IRR) remain consistent with the company’s investment criteria based on current projections.

Executive Statement

Mr. Numpol Malichai, CEO and President of SCG Decor Public Company Limited (SCGD), commented: “These investments in Vietnam and Thailand will significantly strengthen SCGD’s profitability to support sustainable future growth. By managing our production bases in each country efficiently — in alignment with our Regional Optimization strategy — we aim to meet increasing market demand while enhancing our competitive capabilities and supporting SCGD’s long-term business growth.”