Mr Viraphol Chaiyateerat, Managing Director of Chaiwatana Tannery Group Public Company Limited (CWT), revealed that the investment in IEC Sakaeo 1 Company Limited (SK1) is in line with the group’s strategic plan to expand electricity generation capacity and income from electricity generation and sales from installation aim to increase power purchase contracts in hand to more than 50 MW within 2023 to prepare for spin-offs in the energy business to raise funds and be listed on the SET.
SK1 operates mainly in the production and distribution of electricity from biomass energy to the Provincial Electricity Authority (PEA) in Muang Sakaeo District. Sa Kaeo Province Through the biomass fuel power generation project (Electricity Supply Tariff) that sells electricity to the Provincial Electricity Authority (PEA), the maximum electricity is 8.0 megawatts (MW), the capacity is 9.6 megawatts (MW).
The company expects to complete the transaction within January ’23. Upon completion of the transaction, it will result in the Company being able to recognize the income immediately, approximately 300 million baht per year In addition, SK1 is located in the same area as the old power station of the CWTG group as well, by lead to joint management and lead to efficiency in terms of cost control and production creating the greatest benefits for the CWT group well.
In addition, the Board of Directors Meeting No. 1/2023 decided to approve Chaiwattana Green Co., Ltd. (CWTG), a subsidiary of the Company. which operates investments in the energy group Investment in IEC Sakaeo 1 Co, Ltd (SK1) in the share of 100% by purchasing ordinary shares of SK1 from International Engineering Public Company Limited (IEC) worth 227,940,000 baht with land 60 Rai 116 square wah, located in Khok Pi Khong Sub-Division Mueang Sa Kaeo District Sa Kaeo Province worth 10,000,000 baht, total investment value 237,940,000 baht
Regarding the trend of business performance in the year 2023, Mr Veerapol expects to continue growing from the previous year. Due to the company’s leather upholstery business there are orders coming in continuously. and have a clear delivery plan Although revenue from the electricity distribution business is coming in regularly, SKC’s business also intends to deliver the work on schedule as well, making the company confident that this year’s performance will could set an all-time high, continuing from the previous year.
Currently, the company group has a power station that sells electricity to a commercial operating system project (COD) 1 with a capacity of 9.9 megawatts in the form of a biomass power plant. Located in Sa Kaeo province And there is a project under development. A waste to fuel RDF plant is being developed into a power station. Currently, there is a waste management contract for 25 years and recently it has been selected from a proposal to the private sector to build a waste management system to produce fuel (RDF) and generate electricity from municipal solid waste fuel. Malasai, capacity of 6 megawatts , who is expected to sign a contract soon.
