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 according to customers’ demand. Last, the steel is cast into billet. The EIF technology will transform electricity 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 other appliances and large-scale constructions that require steel products of high strength, such as bridges, dams, expressways, and structures that need to tolerate high compression, as well as tall buildings.
At present, the Company has a factory to produce steel billet and a branch located in Kabinburi Industrial Estate, Prachinburi Province, on a total land area of around 70 rai. Initially, the factory had maximum billet production capacity of 250,000 tons per year and later increased the capacity by 480,000 tons per year in the phase 2 factory, thus making up a total production capacity of 730,000 tons per year (maximum capacity as requested for permit in the Environmental Impact Assessment Report or EIA Report). However, as the Company needs to manage and control electricity costs, it has the policy to produce steel billet only during off-peak periods, in order to keep electricity costs lower than that during the peak periods. The two factories of the Company are accordingly running at maximum combined capacity of 450,000 tons per year during off-peak periods at present. Its major customers are rolling mills that have no blast furnace and rolling mills that have their own blast furnace but with inadequate production capacity and hence relying on billets from external sources. Besides, the Company has become a member of the London Metal Exchange (LME), a world leading futures market, allowing for its exports of products to the global market, such as ASEAN, and reflecting international acceptance of its product quality. This can help boost the Company’s image and reputation as well as its products in overseas markets.
The Company has the policy to reduce business risk by expanding to new business opportunities which have high potential growth and can create sustainable revenue in the long term. The Company sees the growth opportunity in solar power plants project which has been promoted by the government and by various financial institutions in investment. Moreover, the Company has interest in renewable energy business of solar power plus its readiness in human resources so the Company started to firstly invest in solar power plant project in Japan.
The Company registered Chow Energy Public Company Limited (“Chow Energy” or “CEPL” in order to reconstruct shareholding in the Company’s subsidiaries and enhance clarity of business structure, whereby the Company will continue its core business of manufacturing and distribution of Steel Billet, while CEPL will operate business as a Holding Company by holding shares in other entities engaging in business relating to investment in, production and distribution of electricity from various kinds of renewable energy in Thailand and overseas. On 31 December 2017, CEPL has the registered capital of 815.0 million Baht and paid-up capital of 570.0 million Baht. The 2 subsidiaries of the Company are
- Chow International Co., Ltd. (“Chow International” or “CI”)
Chow International was established on 25 June 2013. As of 31 December 2017, it has registered capital and paid-up capital of 340.0 million Baht. The Company has 100% in shareholdings. The objective is to invest in solar power plant projects in Thailand and overseas. As of 31 December 2017, Chow International invested in many projects as follows,
- The investment in Solar Rooftop power plant project in Thailand with production capacity of 6.64 megawatts and started to COD since 2016.
- The investment in solar power projects in Japan. The income from 8 projects are recognized from total production capacity of 31.65 megawatts.
- The investment in solar power project in Iwaki, Japan with the total production capacity of 26.68 megawatts. The construction of this project is 100% complete, waiting for the date to connect the transmission lines.
- Premier Solution Co., Ltd. (“Premier Solution” or “PSCL”)
Premier Solution was established on 29 July 2013. As of 31 December 2017, it has registered capital and paidup capital of 50.0 million Baht. The Company has 100% in shareholdings with the objective to provide consult in solar energy investment, develop and provide services from license and permit acquisition of power distribution, lease contract, design, construction, equipment acquisition as well as provide operation and maintenance service. Premier Solution engages the business as follows,
- Renewable energy generation and distribution in Japan. Premier Solution established Premier Solution Japan Company Limited (“Premier Solution Japan” or “PSJP”) which was registered in Japan. It has current registered capital and paid-up capital of 100.0 million Yen. Premier Solution holds 100% in registered capital to engage generation and distribution of renewable energy in Japan. Premier Solution Japan established subsidiaries to engage the operation in solar power plants and holds 100% in registered capital among subsidiaries. As of 31 December 2017, the subsidiaries have 8 power plant projects which already start to COD.
- Investment consultancy, Engineering Procurement and Construction Management (“EPCm”) and project development for distribution. Premier Solution Japan engages Investment consultancy, Engineering Procurement and Construction Management (“EPCm”) and project development to investors who are interested in solar power plant project in Japan with all-in-one service from FiT license acquisition, Land acquisition, revenue analyze from investment, permits acquisition, construction as well as operation the power plant and distribution the power plant project developed by the company to investors who are mostly from Thailand.