CHOW Kick Starts its New Renewable Energy Business with a 18-MW Solar Energy Project in Japan
Chow Steel Industries Public Company Limited (CHOW), a SET-listed manufacturer and distributor of high quality steel billets in Thailand, announced investment in a 18-MW solar energy project in Japan as a start of its renewable energy business. The project is supported by its two subsidiaries: Chow International Company Limited will be the investor of the project worth of 1.8 billion THB and Premier Solution Company Limited will be the developer of the project. Approval was granted by the board in the board meeting on January 17th, 2014.
AnavinJiratomsiri, CEO of CHOW, explained the decision on the investment of their first solar energy project: "The renewable energy market reported strong growth globally and the growth is expected to stay strong through at least these two centuries. The Japanese government provides very good support for the private sector in the renewable energy industry. We believe this solar energy project in Japan is a good start for our renewable energy business. Our decision was quickly supported by financial institutions and our board. The investment fund will mainly come from financial institution loan and the rest from the company's registered capital. The fund is expected to be completely injected into the project by the end of Q3."
For this project, Premier Solution Company Limited will vertically develop the project from acquisition of lands, permits, solar panels, and other equipment; to project construction and deliver the project to Chow International Company Limited. Currently, the company has secured the FIT permit from the Ministry of Economy, Trade, and Industry (METI), Japan at the rate of 40 JPY/MW with 20-year contract. The project construction will start this Q1 and finish in Q3/2014.
This solar energy project is part of CHOW's strategy of expanding into the renewable energy market as its way to long-term sustainable growth. The renewable energy business will help diversify business for CHOW in order to generate additional income and profit and also to minimize the risk of heavy reliance on its steel business. The new renewable energy business is expected to bring long-term growth opportunity for CHOW.
21 January 2014