Premier Group of Companies’ business direction for the next few years is to invest in alternative energy, including solar and wind farms.
“The environmental focus is not really new, as we have been in the wastewater-treatment business for almost 36 years,” Vichien Phongsathorn, president and chief executive officer, said yesterday.
“We’re interested in the clean-energy business, including water treatment and solar and wind farms, as they are long-term investments and provide stable returns and growth,” he said.
The alternative-energy business will be handled by the company’s wholly owned subsidiary Premier Products, which will be listed by the first quarter of next year.
Premier Group in the fourth quarter of last year paid Bt60 million for a 25-per-cent stake in a 5-megawatt solar farm in Saraburi.
The solar farm will expand by 10 megawatts in 12 months, which will require about Bt1 billion in capital, of which Bt666 million will be bank loans and Bt333 million will be injections by existing shareholders. Half of that will come from Premier Group.
“We will also acquire a holding in a 50MW small power plant project worth Bt5 billion, to be set up in Chachoengsao and Prachin Buri within 24 months,” Vichien said.
The solar farm will sell its output to the Provincial Electricity Authority and the small power plant to Electricity Generating Authority of Thailand.
Premier Group last year brought in more than Bt5 billion in consolidated revenues from its listed subsidiaries, which are Premier Marketing, Premier Enterprise and Premier Technology, and Bt1 billion to Bt2 billion from non-listed subsidiaries.
Environmental businesses contribute about 20 per cent of the group’s revenue.
Under the business vision launched yesterday called “Harmonious Alignment of Success”, the group will seek partnerships and alliances with enterprises and people sharing the same innovative ideas.
Premier Group has budgeted Bt200 million to Bt300 million for possible joint ventures or mergers and acquisitions, Vichien said.
