Good morning, ladies and gentlemen. Welcome to SCG Analyst Conference for the third quarter of 2025. I'm Thisana from Investor Relations team, and I will be the moderator for today's session. We highly appreciate to welcome all the guests who join on site and from online as well. For those who already joined online, please kindly change your registered name to your name, underscore your company name so we are able to recognize you. Before starting the session, let us observe a short moment of silence in honor of Her Majesty Queen Sirikit, the Queen Mother, whose grace and dedication inspired our nation. May she rest in peace. Thank you, Ka. Today, our management are here to provide you the third quarter of 2025 business updates and outlook. After the presentation, we'll open up the floor for the questions.
Today's presenters comprise of SCG management led by Khun Thammasak Sethaudom, the CEO of SCG, who will walk you through the consolidated results and provide highlights of SCG Cleanergy. Khun Sakchai Patiparnpreechavud, the CEO of SCG Chemicals. Next, Khun Surachai Nimlaor, President of SCG Cement and Green Solutions. Khun Wiroat Rattanachaisit, President of SCG Smart Living and SCG Distribution and Retail, and he will also be representing SCG Decor. Followed by Khun Chantanida Sarigaphuti, CFO of SCG, who will present the financial part and also SCGP. Then the sustainability part will be highlighted by Khun Chana Poomee, Chief Sustainability Officer. Now let's start today's presentation beginning with Khun Thammasak.
Good morning. Glad to see you again for the result of the third quarter this year. I would like to start with an observation of what is going on in Q3, and we'll touch a little bit on Q4 and going forward. We start to see a really clear slowdown, deep slowdown in Thailand, for example. Global also start to see the effect of the tariff. So that is something we observe clearly on what is going on. All the temporary factors that we used to enjoy in the first half of this year is already passed, like front-loading, that also benefit us. In the first half of this year, we still grow at 3% for the GDP of Thailand. But now we're experiencing something below 2% now. So probably some people say 1.6%, some people say 1%. So this is pretty low, almost stagnant.
We start to see a protectionism. You could see several countries around us now protect their domestic industry. Just to give you some like India, Indonesia, Philippines, start to use all those tech measure to protect their domestic industry. So that is something create a very turbulence. We are talking about week by week trade volatilities. Coupled with a deep decline in the global chemical margin over the past few weeks. So that is something we see a very volatile situation coupled with the global slowdown. Thailand, domestic Thailand you could see that we are slowdown significantly. Tourism not come back yet and unlikely to come back soon because of the several factors. Consumer spending ability weak, even though the government try to clear up of the debt for THB 100,000. But anyway, that will take a while to get into effect.
Construction industry, especially the residential, are very weak. We see an over capacity in the at least a year or more. That is something we are start witnessing. This is something we are afraid from quite some time, and we are prepared for this kind of moment for quite some time. If you observed our preparation over the past years. Anyway, I will discuss more and in detail in the outlook later. To show you the performance, actually nine months, our EBITDA is still pretty okay. A 15% increase on the same period of last year. We registered at THB 44.5 billion. Thanks to the effort of the restructurings that we are close non-performing, streamline of the inefficient and promote the HVA and clean up, make it thinner on the working capitals. We are launching the Smart Value Products.
This is something that really help us. If you look at the EBITDA from operation, actually EBITDA on operation is firm. Because last year we have the IRS unwinding gains, so that if you adjust that one, you could see our core EBITDA pretty much stable, even though very turbulent business situation. Third quarter EBITDA registered at 14.1% or close to 14.2%. That improved 44% year-on-year but decreased 19% Q-on-Q because in the third quarter, dividend is not much as big as the second quarter. Our strategy is to focus on the cash flow and ensure the stability. It's probably be the right direction that we have done so far. Our cash on hand increased to THB 50 billion, THB 50.6 billion. Of course, on the net profit, we registered a loss at THB 669 million for the third quarter.
If you dig down a little bit, that pretty much from the stock adjustment or the NRV together. Also some small restructuring costs that we put in the third quarters. If you adjust that one, actually our adjusted earning is THB 774 million. Stock loss is something that we got mark-to-market. We are not sell it yet. If we sell it, yes, we will realize loss but price of the chemical are very volatile. Basically, whatever in the inventory doesn't mean it's real loss yet. Fourth quarter, we still see a big challenge, as I told you, especially in Thailand. Trade uncertainty, you might see some front line that thing get improved, but if you look at what really happened in the U.S., the slowdown in the U.S. and rising of the unemployment, so that it show the economic activity in the U.S.
is really weakening. It will ripple throughout the world. The economic activity in U.S. actually driven by the tech and the AI sector, not by the real sector. If you look at the real sector, it's even weaker than what you see in the news. Our sale in third quarter is THB 121.7 billion. This is already include the volume from Long Son. If you don't have the volume from Long Son, it deeper than this on the sale revenues. Even though we start up another complex, but year-on-year, we're still down 5%. This is the situation. The problem is not the volume, the problem is the price. This is something we are experiencing. On the nine months, we registered THB 270.8 billion against down on 3% year-on-year. In term of the geographic destination, ASEAN still represent 82%.
ASEAN is still very important. Apart from Thailand, Vietnam, Indonesia, Philippines, Malaysia is still pretty okay. You will see our strategy will adjust basing on this fact. That is the fact we are facing, okay? We are still really focused in ASEAN at the moment. This is the revenue by sector. You see that chemical increased because of the LSP. Without LSP, actually it decreased. Cement and green construction remained a little bit increased, even though it is a low season, mainly because of the price increase. Smart living or building material, you see drop again on the revenues and ceramic also as Khun Numpol already discussed a few days ago. Packaging also down. This reflects the consumption that happened in the third quarter. EBITDA already discussed, so that is why our strategy to enhance the EBITDA is actually back good on track. Okay.
Profit. This is something that we manage carefully because on one hand, we need to do the restructuring to make ourselves more competitive in the long run. On the other hand, it will hit into our net profit and also the stock adjustment that I already mentioned. If you look at the nine months net profit, you could see that, of course, if you deduct the one-time gain from the Chandra Asri , the association. You could see that the core adjusted earning is more or less stable. Anyway, we have to deal with the quarterly issue, especially in Q3 and later on in Q4, that we still have to manage this carefully. That is to start with. I would like to send to Mr. Ang.
Good morning. Let us begin with the situations. Price gap. First of all, I would like to say that we are operating in an environment of the highly volatized feedstock and price. You look at what happened in the last quarters, there are several challenging issues. For examples, the new supply addition from China is still increasing significantly. Also, have the geopolitical tensions, especially the U.S. sanction to last year. The giant oil companies such as LUKOIL and others, the government oil company Rosneft. Also Saudi Arabia is dumping their propane price into the market against the huge cargo from U.S. That is several key factors that make in the quarter the price volatilities up and downs. You look at average HDPE Naphtha gap in the third quarters drop from the second quarters about $30 to $332/ton.
Also, PP Naphtha is even worse, dropped down almost $55 per ton. That is caused by the propane price in the market dropped down, as I mentioned, because of the Saudi Arabia's try to protect their market shares, dumping the price into the market. Oil price some months is soft. You look at the situations, OPEC also announced to release their capacity. It means the supply side from OPEC is getting higher. In the quarter, they also have the situation among Ukraine and Russia. That also makes this very unpredictable feedstock price. Let us say Naphtha should be soft, but it is already been firmer because of this attack to the export port of Russia. Also some of refineries also impact by this bombing. Anyway, move to the opening rate.
You look at SCGC, we can run above the average rate in the market caused by our LSP just restart in the mid of August. Look at volumes in the third quarters. Overall, PE and PP increased about 50,000 from the last quarter, achieve almost 500,000 tons caused by LSP restart. Make year to date, I mean the quarter to date for nine months, the total sale volume is 1.35 billion tons. White oil change more or less is the same. The sale volume drop a little bit from the last quarters because of the seasonality. Our total sale volume in the third quarter is 184,000. Look at the financials of third quarter's SCGC. We report EBITDA THB -28 million.
As Thammasak just mentioned, if we exclude LSP and also exclude the inventory loss, it seems EBITDA of our core asset in Thailand still contributes, can make positive EBITDA. It is about THB 2.2 billion. Look at the mome months. Our adjusted EBITDA excluding the LSP and the stock loss is THB 9.9 billion. It is much higher than the last year. Look at the net profit. Net profit is the same. We report net profit of the third quarter include everything, it is almost a THB 4 billion loss. If excluding the LSP and the stock loss, it still gain a little bit, almost THB 400 million. Three quarters this year, much better than the last year, is THB 1.3 billion. Anyway, nine months because of last quarter, we have the one time gain from the negative goodwills, make our report net profit nine-month THB 5.9 billion.
Look at the outlooks in the next quarters. Actually, the situation is still very tough. It is very volatility. Look at the new capacity from China. The third quarter, fourth quarters, the new capacity addition is still the same. Another 3.5 million tons will come on stream. One key factor that is really abnormal, as I mentioned, propane price is now very soft. Even though the past two years, the propane price firm almost the whole years. This year, this quarter and going to the next quarters, the propane price is dropped down. Now, if you compare with the Naphtha, propane cheaper than Naphtha about $40-$50. This is very challenging to the Naphtha cracker. The byproducts of the Naphtha cracker is also soft because of the new capacity addition that make all the byproducts prices going down.
All in all, the olefin chains, PP chains is very challenging. As I say, the propane price is soft, is very much favor to the propane dehydrogenation from China. This situation will make the higher capacity, higher operating rate of the PP from China. Look at the vinyl chains. The feedstock is softer because of the new supply from U.S. All in all, the spread of the vinyl chain, PVC chain maintain from third quarter to fourth quarters. What we plan to do, or what we have to focus on this coming fourth quarters. As I mentioned, gas now is very soft and cheap. So we have to maximize gas as a feedstock in both LSP and in Thailand. Right now, we increase the gas feedstock in LSP to 20%. That will much help in term of the overall cost of LSP.
Anyway, asset in Thailand, we also can maximize the gas as a feedstock up to 20%. But it's really challenging because of the byproducts market in the Naphtha cracker. The fourth quarter now is a very high competition with the new supply from China. Second, we have to continue accelerate our HVA. The next page, I will show to you a little bit. Our R&D team, product development team, so we have new products quarter by quarter that at least can help in term of the margin a little bit. Also, the divestment efforts. We still put so much effort trying to divest some of the inefficient or probably less strategic asset. Now we are doing. The last one is also the financial discipline. That is still continue to lower our working capitals.
Also the CapEx, we try to squeeze and try to tightening all of the expenses. Next is SVP. Anyway, as mentioned, R&D team still put effort to at least we launch every quarters the new grade, new summons, new improvement. Last quarters, we successfully to introduce our advanced recycle. That is from our demonstration unit. Is a mixed waste, and we convert from mixed waste to the feedstock. The brand owners really support these ideas. We sold to big name, both advanced recycle and mechanical recycle. SMX Technology is seem old, but the new application is coming quarter by quarters. We successful to improve our new grade, the so-called very high abrasions. That is very good pipe for the mining. Even though we present these initiatives to the pipe association in the world, that we got award. Also, we try to down-gauging some of the packagings.
Maybe we get used to because this kind of packaging also in our house. Also, The Coca-Cola Company, the cap is, we is among the frontier suppliers that we can down-gauging to make light weight of the cap. Also, the film is lighter and stronger. The last one is the energy saving business is now we successfully in the cold chain. Now we also try to do the energy saving in this building. In the next few months, I will report how successful to lower the cost in the office building. That's potential to expand the business to the others. That's all my presentation. I would like to pass to P'Nong.
Good morning. [Non-English content]. May I start from market situation. For Thai domestic cement demand in the third quarter decreased 1% year-on-year. Infrastructure and commercial segment are being the main driver in this quarter. For the ASEAN market, it also improved compared to the same period last year, particularly in Vietnam. Mainly come from infrastructure project from the government and Cambodia from the Chinese investment. For the revenue from sale in the third quarter, revenue registered at THB 20.6 billion, slightly declined 2% Q- on- Q. Mainly come from the soft demand in the rainy season in the third quarter. However, for the first nine months of this year, our revenue grow 1% year-on-year, mainly from price increasing as Khun Thammasak has mentioned already. For the EBITDA.
EBITDA in the third quarter registered at THB 3.7 billion, almost flat compared to quarter two, but increased significantly 50% year-on-year. This come from on our cost saving project and price increasing. For the profit for this period registered at THB 1.6 billion, almost flat compared to quarter two, and improved significantly year-on-year. Although in the quarter three is the low season of a cement market, but we can maintain our profit at the same level as quarter two, thank to our cost saving project and price increasing as I mentioned earlier. For the business highlight, on the left-hand side, we have scaled up our 3D printing mortar in Japan through our partner, Serendix, by leveraging our expertise and customize our product to fulfill our customer need.
On the right-hand side, we have strengthened bridge and infrastructure in Thailand by using ultra-high performance concrete or UHPC. We collaborate with our partner from Malaysia. This technology not only improve concrete performance, but also enable faster construction and lower long-term maintenance costs. Another highlight example, we have launched a new concrete product. We call it CPAC Extra Base Layer. This kind of product which offer quick setting and easy handling and working. On the right-hand side is a good example case, sinkhole near Vajira Hospital. Our customer used this product, and they can fix the problem within two days. The last, for the business outlook, we foresee continued growth in government project and commercial project in Thailand, and seeing a continued growth in Vietnam also. For our effort, we continue work on cost-saving project and develop our low carbon cement.
The third generation, we can reduce carbon emission to 30%-40% if compared to the conventional cement. In term of product portfolio, we launch Smart Value Product, or SVP, in all Asian country to fulfill our portfolio and serve our customer segment. That's all for cement and green solution. May I pass to Khun Wiroat, kap.
Good morning, kap, everyone. [Non-English content] . I would like to start with the Thailand building materials situation in the third quarter. The residential segment main challenge is slow demands, directly causing a drop in new project launch and construction delays. However, the positive side, especially the non-residential and government sector. For the regionals, Vietnam continue to grow with the demand increasing toward bulk cement, while slow residential demand in Cambodia is weakened. Indonesia is remain stable, driven by the key export sectors. In term of the performance, smart living and distribution retail business. This quarter, our revenue is experience a decline. However, our performance still outpace the overall market. In term of the EBITDA. EBITDA saw a decline in the third quarter and nine-month period. This was primarily due to the business restructuring effort.
For the profit, for the nine months, we experienced a decline mainly due to the high cost for the business restructuring previously I mentioned. Moving to the SCG Smart Living business highlight. We diversify portfolio to optimize target segment and drove cost efficiency as follow. We redesign our ceramic roof tiles, we call the SARA Series. While maintain strengthen to serve target segment. We launch a new product, concrete tile. It reduce surface temperature 3-7 degrees Celsius, while also incorporating 40% in recycled content. We also continue to drive THB 186 million in cost efficiencies by executing program across energy management, lean automation, and raw material optimization. For the SCG Distribution and Retail, we have the two major area to accelerating growth and improving customer experience. We have the successful expand our low carbon cement portfolio into the U.S., Australia, and Oceania.
While also expanding our supplementary cementitious materials into Asia and Africa. Moreover, we have made strong progress with the launch the new, our reroof with the AI analytics to enhance our visual roof service with the AI defect detection and condition analysis. Essentially, the value of our customer to give the customer accurate detection and precise assessment. Most important, we deliver faster quotation within the three days. For the outlook, we expect growth in Thailand infrastructure segment driven by government spending, alongside regional expansion in Vietnam for expected resumed construction and Indonesia supported by steady exports. For our internal effort priorities, we enhance competitiveness through Smart Value Products to optimize customer segment and strategic cost efficiency to boost our business performance, and strengthen sourcing to support the expansion of our Oceania portfolios. Lastly, we leverage technology and AI to enhance customer experience and drive digital transformation.
For the SCG Decor this quarter, the EBITDA was THB 902 million, increased 18% year-on-year and 12% Q-on-Q. The profit was THB 305 million, an increase of 61% year-on-year and 37% Q-on-Q. The EBITDA on sales was 16% and profit margin was 5.3% due to continuous cost saving and efficiencies projects, and higher sales of the glazed porcelain is a new product and HVA. Revenue was THB 5,638 million, dropped 10% year-on-year and 2% Q-on-Q from ongoing slow demand in Thailand and effect appreciate Thai baht. That affect the consolidate of the regional sales. For the nine month performance, EBITDA was THB 2,513 million. It slightly dropped from 1% year-on-year, while net profit was THB 744 and increased 2% year-on-year.
Despite the challenging market without the impact of the baht appreciate, EBITDA and net profit would increase 1% and 6% year-on-year, respectively. Excluding the non-recurring items of the business restructure and Mariwasa in Philippine fighting expense, EBITDA and net profit would be around THB 2,592 million and THB 811 million respectively. That's all for my part, kap. Let's move to the P'Pan, kap. Thank you, kap.
Thank you, kap. Good morning. Kap, let me begin with the performance of SCG Packaging. For nine months, revenue was about THB 94 billion, dropped 7% year-on-year. That is pretty much of the intense competition in terms of the price. But the volume increased by about 3%. There is some good news that we have seen strong demand in ASEAN countries. EBITDA was THB 12.6 billion and net profit was THB 2.8 billion, dropped year-on-year. That basically, the falling, the drop in sales revenue. And also, the other reason was because of the Thai baht depreciation. Comparing nine months of this year and nine months of last year, Thai baht appreciate about 7%. Zooming into the Q3 performance. Revenue was THB 30.4 billion and EBITDA was THB 4.1 billion and net profit was about close to THB 1 billion. Sales revenue dropped both on quarter-on-quarter and year-on-year.
The same reason as I explained for nine months. EBITDA and net profit, you can see that it improved on a year-on-year basis, and that is resulted from the continued effort in terms of the cost management and in terms of the efficiency, in terms of the energy usage. SCG Packaging announced on Tuesday that they have signed a conditional share purchase agreement to buy 100% stake in a company called MYPAK in Indonesia. This company is the box producer with the capacity of 144,000 tons per year, and that is kind of in line with their strategy that they would like to expand in the region and also to expand in a downstream business. So with this acquisition, which is expected to be completed within this quarter, that will increase the integration level of SCG Packaging in Indonesia from 18%- 26%. Let's move on to the financial.
With these numbers. What I would like to emphasize is that we continue with our financial discipline to ensure our financial stability, especially in this very challenging and uncertain environment. Working capital, you have seen a continued reduction, but it increased a little bit in Q3. That is pretty much because we resumed operation in LSP. And with the operation, of course, we have to build up some working capital. In terms of net debt, it continue well on track in terms of the declining. At the end of Q3, our net debt was about THB 279 billion with the net debt to EBITDA of 4.7x , a reduction from 6.3x at the end of Q3 of last year. Cash, as Khun Thammasak mentioned, our cash ending at THB 50.7 billion, up roughly about THB 5 billion from the end of last quarter.
In terms of our interest cost, also reduced. If you recall, at the end of Q3 last year, it was about 3.5%, 3.6%, now down to 3.2%. Okay. In terms of the capital expenditure and investment, that is another financial discipline that I mentioned, that we will be very mindful and very careful in terms of the spending. Capital expenditure and investment for nine months of this year was about THB 21.7 billion. And as we consistently communicate in terms of our target of the spending this year, around THB 30 billion. I think we would be able to achieve that. It is going to be THB 30 odd billion of this year. But that really reflect what we have stated and we have promised that we are going to be very cautious in terms of spending. That conclude my presentation. I pass on to Pichanaka.
Good morning. Let's start with the SCG absolute greenhouse gas emission, Scope 1 and 2. For nine months of this year, it was about 20.34 million tons, in line with the Science Based Targets initiative recommendation to reduce each year 2.5%, in order to remit increase in global temperature as we commit to less than 2 degrees Celsius. A key driver of SCG progress to net zero by improving energy efficiency and maximizing the use of the renewable energy and also the alternative fuel. This initiative not only reduce greenhouse gas emission but also strengthen the SCG business performance, lower our costs, optimizing resource utilization, and also accelerating the scale-up of the low carbon solution and enhancing our competitiveness for long term as the resilient is really focused on this situation.
For this slide, show that SCG has been preparing to adopt the International Sustainability Standards Board, or ISSB, that integrate sustainability into both our operation and disclosure process. To ensure data accuracy, transparency, we are developing the ESG data platform to strengthen data integrity across the organization. In this year, we start incorporating sustainability-related risk opportunity and financial impact into our business planning. With this strong foundation, SCG is ready to begin ISSB-aligned disclosure in 2026 as the SEC requirement for SET50 company in 2027. This reflect our commitment to transparency, readiness, and leadership in sustainability reporting. This last slide that showing SCG ESG Symposium always serve as a key collaborative platform that brought together government agency, the private sector, academia, and civil society to drive Thailand sustainability transformation. This year, the event was held under the theme "Green Breakthrough a mid the Perfect Storm."
This forum is not only about sharing ideas. It's about building strong collaboration and turning those ideas into real action. Participants from all sectors came together to exchange insights and jointly develop three key proposals. The first proposal unlocks the reform the energy system. This is very important because of accelerate full liberalization and promote direct PPA to make green energy more accessible and cost competitive. This will enhance flexibility, reduce costs, and speed up Thailand low carbon transition. Second proposal, empower SME, small medium enterprise. Astra be the one-stop service to improve SME access to technology knowledge, and also finance support process improvement through green digital technology to reduce costs and strengthen productivity and competitiveness. The last point, third proposal, strengthen climate resilience. Promote innovation technology collaboration across all sector to enhance the national readiness and adaptability to climate impact.
Today, to advance this proposal, SCG is ready to work closely with the government and our partners to transform this proposal into concrete action, driving Thailand toward a more competitive and resilient. May I pass back to Khun Thammasak.
Khob khun khrap. For the clean energy part, I think this is pretty clear that this sector is growing and it is going to continue to grow for the next 5- 10 years easily. Thailand and the region, actually it is the world, need a lot of new green energy. Thailand now have only less than 15% of the renewable energy in the energy mix. That is why we need more. Of the new investment, according to the BOI requirement, they need the clean energy. You are going to see strong demand for the clean energy for the next 10 year easily. We still participate in this. We are mindful because on one hand we are managing the debt for the overall group debt. On another hand, we are progressing on the clean energy, especially on the strategic important portion.
We still grow our green megawatt that now register at 876 MW in total. We still have in the pipeline this 876 MW and 449 MW is in the pipeline. That means we have to convert this from the signing commitment into the energized megawatt. That is a thing we are still working on. The solar and wind is we call it the plain vanilla, because that is the simple thing that you pursue. We will grow according to the demand. However, if you really want to enhance the green energy system, you need very high efficiency energy storage. I would happy to say that the third heat battery already start up in Thailand in Ta Luang on August 22. It easily achieved the 72 hours continuous running and still running up to now. Efficiency is registered as 97%. Very high.
This is the new generation heat battery. The first generation is in California two years ago. This is the second generation, the new design. There are a number of global customer that are coming to see and willing to work on this heat battery because basically this is very high efficiency energy storage and can convert into the green steam. That is something exciting and we will come back and report this progress on a quarter basis. That is from the overall business. I would like to spend a couple of minute on outlook and even into next year that as we see. Domestic Thai economy will be sluggish unfortunately. We have a temporary government for four months. I think the economic team has done a excellent job. However, it is just four months. We know that we are going to have a re-election.
After the re-election, there will be a period that we have to form the government and this and that. That is the vacuum period, which will impact the critical moment of the Economic recovery. That is the fact that what we have seen. Especially on the government budget disbursement that we really have to keep an eye on. If there is a hiccup, that residential, commercial already doesn't work in term of the construction. The only sector that still keep going is the infrastructure. That is something we would like to keep an eye on this, if whether the government still can create the continuity of this budget disbursement. Trade policy uncertainty is very, very unclear. You see up and down, up and down on a monthly basis. Transshipment policy is still not solved yet. That is something worrisome.
If it really hit, let's say if it is a 60% requirement for the local content, that is going to be an impact on the short term. Chemical, as P'Sang mentioned, is still very volatile. We still see a lot of new capacity coming from this year, and we already see next year that is scheduled to come. That is still worrisome. So especially when you see the margin compress again to close to $300/ton, and for PP, Naphtha margin compress below $300/ton. That it is really hurt the chemical industry. Energy price is still very highly volatile because of the war. Some bright spot that we see is the regional economy, especially in Vietnam, Indonesia, Malaysia, Philippines, that is still growing healthily. So that is why we need to adjust our strategy to put more emphasis on the growing market.
Our emphasis going forward, of course, the number one is still pretty back to basic that we have done more than a year, is on the continue the cash flow stability. So EBITDA is going to be very important for us. We still stick to these strategies to enhance the EBITDA, optimize the cash on hand, make sure that everything is really stable over the next years. So that is something we will focus on. Since we already see the regional impact from the trade war and the economic resiliency, we have to increase the scale. How to increase the scale, meaning that we will centralize the production center in the regional basis, not just the country basis. So basically, centralize in some region, in some production center to create a higher efficiency.
When you do that, you not only achieve the higher efficiency, you can implement robotics and AI to kick into the another key new levels of the efficiency. So that means the restructuring is still need to be done. If you look at the China new manufacturing strategies, it is exactly the same. So that is what we try to do. So basically, this move into the new manufacturing era, as we announced, to automate it, to use the AI and to centralize it. Chemical, as P'Sang already mentioned, Long Son is the asset that we can highly use propane, and propane are pretty competitive. So, running LSP become a good decision when the propane is cheap like this. So that is something we will maximize the propane and of course the high-value debt. For the cement and construction, Vietnam is still growing.
If you have a chance to visit Vietnam, you see a lot of construction, a lot of activities that are happening on the ground. So Vietnam will be the center of the growth activity. It makes a lot of sense to use Vietnam as the production center to serve the regional regions, the whole regions. Of course we will not only just doing the same thing, but we are intervene with our low carbon strategies, because that is the best way to create a new production center, reduce the emission, make it sustainable. We do not need to come back and redo it again when the international requirement become standard. Market and product diversification that I already mentioned. So we cannot just totally rely on the Thai market, we have to rely on the regional more and more.
That means the HVA and Smart Value Products will need to customize to the new customer segment. Last but not least, again, this is something I still remember, I still pushing forward on the divestment. This is the homework that we already commit last year. We still working on it, not easy, but we make some progress. We hope to deliver something, the divestment in the fourth quarter or in the first half of next year. That what we try to achieve. Thank you.