At a meeting on Thursday, the board approved the reduction in paid-up capital by cancelling 12.5 million shares that carry Bt10 in par value. The number of shares are equivalent to 5 per cent of paid-up capital.

The company did not provide a reason of the capital reduction in the statement.

Yesterday, the company announced that its consolidated first-quarter net profit dropped slightly, from Bt1.16 billion last year to Bt1.14 billion. However, its unconsolidated results slightly increased, from Bt1.089 billion to Bt1.095 billion, said the company's statement.

SCCC also announced that the board approved the renewal of the US$4 million (Bt139 million) general-assistance agreement between itself and a related company, Holcim Group Support, which is wholly owned by major SCCC shareholder Holcim. Under the two-year agreement, HGRS will continue to support SCCC by providing permanent, systematic services: a worldwide exchange of best practices and training programmes, development systems and methods, and consultancy on the solution of specific problems.

HGRS and Holcim Group Support will also place its global resources at SCCC's disposal with regard to access to relevant markets, financial institutions and suppliers.

"This consideration is based upon the assumption that SCCC will have a positive net income during the term of the agreement. Should such an assumption not be met, SCCC and HGRS will review the terms of the extended general-assistance agreement," Andreas Leutenegger, senior vice president for financing and controlling, said in the statement.