Energy management will be the main focus at Siam Cement Group in 2008, with all business units being required to pay more attention to maximise the benefits of resources, said SCG president and CEO Kan Trakulhoon.

Aside from the waste-heat power-generation projects at cement plants, which will require a total investment of Bt5.9 billion and be complete in 2009, all units are urged to recycle resources whenever possible. The waste-heat power-generation projects are expected to reduce waste while saving energy costs of 20 per cent, about Bt1 billion a year. They will also reduce carbon-dioxide emissions by approximately 250,000tpa

The programmes are to be introduced under the "3R" concept, with all units required to reduce, recycle and replenish resources. Heat is to be generated from waste and used water recycled.

"It’s not cheap, but our focus is not the returns; it’s the environment. We are initiating these voluntary programmes to reduce waste in the light of concern about global warming," Kan said.

Kan said it was also necessary for all SCG investment projects to win approval for environmental standards. Without approval, the projects will not be continued. "Without environmental standards, the projects are not sustainable, and they will go nowhere," he said.

Practices at SCG plants are also open to nearby communities. Kan said that to counter global warming it was necessary that consumers become more concerned about the issue. They should campaign to buy products only from companies which show concern for the environment.

Kan said that despite the sluggish demand which had depleted the company’s margins this year, SCG’s investments of Bt90 billion were still on-going, including Bt60 billion in the petrochemicals business.

He said energy prices would put a heavy burden on all companies next year but the more worrisome factor was political instability. Instability is the greatest risk to all, local or foreign, he said.