SCGD to shut two ceramic tile plants in Thailand amid energy cost surge
Tile Wars · markets · · Tile Wars
SCG Décor will close two of its four tile factories in Saraburi and freeze new investment in Vietnam after energy costs jumped 20–40%, as Middle East tensions reshape the industry's cost base.
SCG Décor Plc (SCGD), a Thai producer of decorative surfaces and bathroom products, plans to close two of its four ceramic tile factories in Thailand and suspend new investment in southern Vietnam, citing the economic fallout from Middle East tensions.
Chief executive Numpol Malichai said energy costs have surged by 20–40%, fuelling inflation, slowing construction projects and weakening household purchasing power. Shuttering two of the four plants in Saraburi will help the company cope with the financial strain caused largely by high energy costs.
SCGD also plans to reduce reliance on fossil fuels by increasing solar power to 15% of its energy mix and biomass to 40% by 2030, up from 13.6% and 25% respectively. The company expects raw material costs to rise further, pushing product prices up by 3–5%.
CFO Sitichai Sukkitprasert said SCGD will maintain its €68 million investment budget for 2026 but has revised expansion plans by suspending non-essential projects. New ceramic tile investments in southern Vietnam will be halted, citing the country's heavy reliance on liquefied natural gas amid global supply disruptions.
Despite these headwinds, SCGD remains committed to Vietnam as a high-potential growth market thanks to government-led infrastructure projects in Hanoi, Danang and Ho Chi Minh City. Its subsidiary Prime has achieved record sales of glazed porcelain tiles, and SCGD is moving forward with a €16.2 million expansion at Prime to upgrade lines from ceramic to glazed porcelain tiles, raising annual capacity from 6 to 6.6 million square metres.
Q1 2026 revenue came in at €150 million, down 7% year-on-year due to the market slowdown and baht appreciation, while net profit rose 14% to €6.7 million on improved margins.
Source: Bangkok Post