SJWD Expands 'End-to-End Supply Chain Solution' Services in Vietnam Signs MOU with VCM to Provide Raw Material Handling and Cement Transportation

SCGJWD Logistics Public Company Limited, or SJWD, is advancing its End-to-End Supply Chain Solution services through SCG International Vietnam for customers in Vietnam. The company has signed an MOU with Vietnam Construction Material (VCM) to provide inbound raw material handling and outbound cement transportation to vessels for export to the United States. The operation will span three years, with expected total revenue of 430 million baht over the contract period.

Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, revealed that the company has laid out a strategy to leverage its logistics expertise following its acquisition of 100% shares in SCG International Vietnam Co., Ltd. (SCG International Vietnam), a logistics service provider in Vietnam which handles cross-border shipping in the ASEAN region, warehouse management, and international supply chain solutions. SJWD aims to enhance logistics services in Vietnam and ASEAN by expanding its "End-to-End Supply Chain Solution" services to various industrial enterprises in Vietnam. The company will apply its knowledge and expertise to supply chain management to improve business efficiency for its customers, and support the growth of SCG International Vietnam's revenue as per its targets.

Recently, as the parent company of SCG International Vietnam, SJWD signed an MOU with Vietnam Construction Materials Joint Stock Company (VCM), part of the SCG Group and a cement manufacturer in Vietnam, to provide End-to-End Supply Chain Solutions to VCM's cement production facility in Vietnam. The objective is to support the export of cement to the United States over a three-year period. The services will include handling inbound clinker to the cement production facility and transporting outbound cement from storage silos to cargo vessels waiting to export to the U.S. Additionally, SJWD will invest in machinery used for cement transportation, making it the only logistics service provider in Vietnam that offers supply chain services along with machinery investment. This requires specific expertise in handling and transporting cement within designated timelines and designing machinery to fit the factory layout and silo sizes to optimize logistics and supply chain cost management.

This service will allow VCM to focus fully on cement production and product quality, as well as better manage logistics costs. SCG International Vietnam expects to help VCM reduce cement handling and transportation costs beyond VCM's target. Moreover, VCM will not have to bear the burden of machinery investment and maintenance costs. This arrangement also offers VCM greater flexibility to either acquire ownership of the machinery or relocate it for use at other plants under VCM's management. Meanwhile, SCG International Vietnam will generate continuous revenue from providing raw material handling and cement transportation services to VCM, with an estimated total revenue of around 430 million baht over the three-year period. Services are expected to commence, and revenue will be recognized, from March 2025 onwards, positively impacting next year's revenue outlook and supporting the expansion of related export services.

Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SJWD, stated that SCG International Vietnam forecasts revenue of 800 million baht this year, which is expected to increase to 1.2 billion baht in 2025. The company plans to expand its logistics business in Vietnam by offering End-to-End Supply Chain Solution services to attract customers across various industries. Other services include international sea freight via vessel chartering, which has already been successfully carried out with two vessels this year, warehouse management, and goods transportation for cement and packaging businesses in Vietnam. Additionally, the company also provides logistics and warehouse services to clients outside of the SCG group, as well as cross-border services with neighboring countries such as Cambodia, Laos, and China, which have adjacent borders and related business activities with Vietnam.

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