The Steel Plc (THE), an SET-listed rolled steel maker, plans to diversify into power generation to ensure a long-term revenue stream as the steel industry struggles.
The company will acquire two gas-fired power plants via a subsidiary, The Siam Power, in which The Steel Plc owns 70% and other investors the rest, said chief executive Boonchai Jirapongtrakul.
The Siam Power has increased capital to 3 billion baht in order to acquire the two plants.
"The plan has also been approved by the board of directors and is about to be submitted for the approval of shareholders at the meeting to be held in February," Mr Boonchai said
The first power plant has a power-generating capacity of 160 megawatts, of which 90MW will be sold to the Electricity Generating Authority of Thailand (Egat) via a power purchasing agreement (PPA) and rest to an industrial estate.
"This power plant has been running for about five years, and after the acquisition we will continue to sell power to Egat for 20 years as set out in the PPA," Mr Boonchai said.
The second plant is a 90MW gas-fired power plant. Construction is due to start soon, with commercial operation set for July 2018.
Source: http://www.bangkokpost.com/