SCGC Acquisition and Expansion Strategy slide image

SCGC Acquisition and Expansion Strategy

Cost Improvement Mitigation plan Revenues Price increase and market diversification Drive up building materials prices as well as raise average cement price to reflect cost pressure Proactively tap market segments and destination with improving demand. Impact Analysis Q1/23 CEMENT Fuel cost management • • Increase AF usage to 40-50% for domestic cement operations in 2023 (vs. 34% in 2022). Diversify fuel type and source as well as secure long term contracts to minimize fuel cost. Self-generated power Offset domestic electricity tariff increase by realizing cost savings from additional 60 renewable MW completed in 2022, bringing total domestic solar capacity to 159 MW for CBM group. Install 7 MW in additional solar capacity in Q1/2023 at domestic building material plants. Productivity and efficiency improvement Actively execute lean operation, automation, digitization as well as supply chain management to minimize cost and increase productivity Implement energy saving projects to reduce energy consumption Higher domestic electricity tariff (FT) Cement Price Coal cost % Alternative fuel use Solar MW SCG P.34
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