Power plants key to revenue of B Grimm
Bt70-bn budget set for 12 SPP projects
B Grimm's business strategy will focus on Thailand and other Asean countries, especially power plants - fuelled by both conventional and alternative energy - as it targets revenue of Bt23.5 billion, up 17 per cent from last year.
B Grimm was established locally in 1878, originally as a pharmaceutical business. Today, the company's business interests include power plants, air-conditioners, health and engineering.
The group's chairman Harald Link said it now saw opportunities to expand in Thailand and other countries in the region, especially Vietnam, Malaysia, Singapore and Myanmar.
In Thailand, B Grimm has set a 2012-19 investment budget of Bt70 billion to build 12 small power plant (SPP) projects with combined production capacity of 2,000 megawatts. This project is being developed by B Grimm Power Co and Amata B Grimm Power Co.
Two of the 12 projects are under construction at Amata City in Rayong province, and two will be in Bangkadi Industrial Estate in Pathum Thani province. The remaining eight projects will be developed in the next phase.
"All of our SPP projects will provide electricity to the companies in the industrial estates better than the IPP [independent power producer] projects," he said.
Currently, the company sells its electricity from SPPs to 200 manufacturing plants in Thailand and Vietnam. This business generated Bt8.88 billion, or about 48 per cent of its total revenue, last year. This year, the company targets revenue from this business of about Bt12.84 billion, or 54 per cent of the total target of Bt23.5 billion, he said.
Excluding the SPPs, which use natural gas, the company is interested in using alternative energy such as wind, solar and water to produce electricity in the future.
Link said the company was negotiating with its strategic partner in Malaysia to develop a wind-power plant with a production capacity 40MW in that country. That deal will be finalised this year.
Meanwhile, B Grimm has joined with strategic partners such as Amata Corporation, Beijer, Carrier, CP Group, Hamon, KSB, Maquet, Siemens and Sumitomo to develop new products.
For example, the company is collaborating with Carrier to develop a new air-conditioner that will be the largest in the market. It will be produced in the Toshiba plant in Bangkadi Industrial Estate.
The company also plans to take over air-conditioner plants in Singapore, Vietnam and Malaysia via Beijer B Grimm Co. It will also start to establish a new business in Myanmar this year.
Link said the company believed that B Grimm's total revenue this year would reach the target of Bt23.5 billion.