The highest quality so as to meet TIS standards and satisfy customers’ requirement
Chow Steel Industries Public Company Limited (“CHOW” or “the Company”) engages in production and distribution of steel billets using scrap as major raw material. CHOW has employed imported production technology well accepted globally. Steel billet production process encompasses three steps. First, scrap is prepared. Second, the scrap is then melted in the electric induction furnace (EIF) with required elements added to enhance the characteristics and quality of the steel to meet the standard quality and customers’ demand. Last, the steel is cast into billet. The EIF technology will transform electric energy into heat to melt iron and steel. The advantage of the induction furnace is a clean, energy-efficient and well-controllable melting process compared to most other means of metal melting. The Company’s customers use billet to manufacture round bar, deformed bar, and wire rod. These long products are mainly used in small and medium construction works such as residential and commercial units as well as other general construction works, including machine tools, auto parts and components, and large-scale construction works that require steel products for reinforced concrete which require high strength and durability for construction of bridges, dams, expressways, and structures that can tolerate high compression, as well as high-rise buildings.
At present, the Company has steel billet factory and branch located in Kabinburi Industrial Estate, Prachinburi Province, on a total land area of around 70 rai. It had an initial maximum billet production capacity of 250,000 tons per year and later increased the capacity by 480,000 tons per year in its phase 2 factory, making up a total production capacity of 730,000 tons per year (maximum capacity requested for permission in the Environmental Impact Assessment Report or EIA Report). However, as the Company needs to manage and control electricity costs, it has a policy in place to produce steel billet only during off-peak periods, in order to keep electricity costs lower than that during the peak periods. Both phases of the factory have accordingly been running at a combined production capacity of 450,000 tons per year during off-peak periods at present. The Company’s major customers are rolling mills that have no blast furnaces of their own and rolling mills that have their own blast furnaces but with inadequate production capacity and thus relying on billets from external sources. Besides, the Company has been a member of the London Metal Exchange (LME), a world leading futures market, hence more opportunities and extended channels for its exports of products to the global markets, such as ASEAN, etc., and reflecting international acceptance of its product quality. This can help boost the Company’s image and reputation as well as recognition of its products in overseas markets.
The Company has implemented a policy to reduce business risk by expanding to new businesses that have high growth potential and can create long-term and sustainable revenues. The Company has envisaged growth prospects of solar power plant projects promoted by the government and by various financial institutions for project investment. Coupled with its keen interest in renewable solar energy business and human resource readiness, the Company has got started with investment in solar power plant projects in Japan.
CHOW’s Board of Directors at its meeting no. 10/2014 on 1 December 2014 resolved to approve the establishment of Chow Energy Public Company Limited (“CEPL”) on 9 December 2014 to operate as a holding company to make investment in solar power business in Thailand and Japan, as well as other relevant service businesses. At present, CEPL has a registered capital of 815 million baht, of which 570 million baht is paid-up. CHOW holds 87.36% and Mr. Tanachart Poudpongpaiboon (“Mr. Tanachart”) holds 12.64% of CEPL’s total shares sold.
CEPL was established in order to restructure shareholding in the Company’s subsidiaries and enhance clarity of its business structure. The Company will continue operating its core business of manufacturing and distribution of steel billet, while CEPL will engage in operating as a holding company with a policy to make investment in renewable energy business which bears low risk and has high growth potential in line with the rising awareness of the importance of renewable energy among countries across the globe. Series of measures have been issued to stimulate and promote renewable energy utilization in a more concrete manner to preserve the environment and ensure the country’s energy security. CEPL and subsidiaries have engaged in renewable energy business focusing on investing in and provision of services in relation to solar power plants both at home and overseas. At present, CEPL has four main types of business as follows:
CEPL’s main types of business
- Production and distribution of solar electric power
- Provision of consultancy and services relevant to solar power plants
- Distribution of equipment in relation to construction of solar power plants
- Strategic distribution of solar power plants