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  • HOME > Case Studies > Industrial Automation > Siam Kraft Industry Co., Ltd.

    Siam Kraft Industry Co., Ltd.

    Siam Kraft Industry Co., Ltd., is a leading player in the packaging paper industry in Thailand. Representing one of the main core businesses of a major ASEAN business conglomerate founded by royal decree in 1913—the Siam Cement Group—it is committed to saving energy and protecting the environment. To drive its efforts, air production and energy efficiency were optimized by introducing automatic coordinated control of the air compressors at the company’s Wangsala Complex. The energy-savings target at the complex was successfully achieved by improving the compressors’ specific energy consumption.

    Energy Efficiency a Key Concern with Rise Energy Prices

    The 68 million people of the Kingdom of Thailand have achieved robust economic growth and rapid industrial and commercial development over the past thirty years. Energy-intensive industries, including petrochemicals and construction, together with export-oriented manufacturing industries such as pulp and paper, constitute a large part of Thailand’s GDP, which ranks high among those of Southeast Asian nations.

    Siam Cement Group (SCG) has stood out as a role model for operating business domestically and internationally for over a century. Established in 1913 following the decree of His Majesty King Rama VI, the group provides products that contribute significantly to the country’s modernization. With the Crown Property Bureau as its top shareholder, with a 30% stake, SCG has three primary businesses, SCG Cement-Building Materials, SCG Chemicals, and SCG Packaging.

    SCG Packaging, with more than 50 subsidiaries, is the first manufacturer of high-quality packaging paper in Thailand and the largest in Southeast Asia. It provides a comprehensive range of products and services to satisfy the diverse needs of various industries. Siam Kraft Industry Co., Ltd. (SKIC) is a subsidiary with environmentally friendly paper recycling as its core business. With production sites in Thailand, the Philippines, and Vietnam, the company’s output is 2.3 million tons of packaging paper per year.

    “SCG has a consistent policy of pursuing energy efficiency and environmental protection as it does business, says Panya Sopasriphan, SKIC’s Energy Division Director. “Thailand as a whole views environmental policy as important and has been making efforts in this area since the 1970s, when laws related to environmental protection were enacted. Since that time, policy measures are being strengthened, particularly now regarding energy efficiency and renewable energy. SCG, as a business group representing Thailand, has been working hard in these areas.”

    SKIC, as a part of SCG, has been implementing energy-saving and environmental initiatives for a long time. Mr. Sopasriphan notes that “The price of coal increased sharply in 2008, and electricity and natural gas prices rose continuously afterward. Improving energy efficiency became an important issue when considering production costs.”

    This case study was published in the 2018 Vol.4 issue of the azbil Group's corporate magazine, azbil.