B Grimm to pour Bt100 billion in power projects

Corporate April 04, 2014 00:00

By Kwanchai Rungfapaisarn


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B Grimm plans to invest more than Bt100 billion in power-plant projects both domestically and abroad over the next five years, said chairman Harald Link.

He said the energy business would be one of the key contributors to B Grimm, which expects to achieve Bt150 billion in total sales by 2028, when the company celebrates its 150th anniversary. B Grimm currently operates businesses in six key sectors: energy, building and industrial systems, healthcare, lifestyles, real estate, and transport.

B Grimm Power, an energy business subsidiary of B Grimm, operates five power plants domestically in industrial estates in Chon Buri and Rayong, and one in Bien Hoa City, Vietnam. B Grimm Power will expand its generating capacity from the current output of 733 megawatts to 2,000MW by 2019, and is also exploring further opportunities in Thailand and across the region, including Japan, Myanmar and Malaysia.

"We expect to achieve 5,000MW in total generating capacity by 2019, which will be from future concessions in developing power-plant projects both in Thailand and [other] countries," Link said. "We also expect to achieve about Bt100 billion in revenues from those power plants by 2028."

He said the company was studying development of coal and solar power-plant projects in Malaysia, as well as two solar farms in Japan with generating capacity of 40MW each. The company is also on a shortlist for tendering of a 260MW power-plant project in Mandalay, Myanmar.

"We have also signed an MoU [memorandum of understanding] agreement with a Danish energy company for a joint venture in developing a 45MW wind-farm project in Mukdahan province," he said.

Founded in 1878, B Grimm continues to boast strong performance in all of its business areas, having expanded by 25 per cent last year, and now targeting 20-per-cent growth in total revenues from Bt25 billion in 2013 to Bt30 billion this year.

The firm’s fastest-growing business is energy, with B Grimm Power recognised as one of Thailand’s leading private power companies.

Last year, energy-sector revenue grew by 46 per cent to more than Bt14 billion. The company achieved major milestones with the commencement of operation of two power plants in Amata City Industrial Estate, Rayong, and the start of construction of two power plants in Amata Nakorn Industrial Estate, Chon Buri, and two power plants in Bangkadi Industrial Park, Pathum Thani.

This year, the company will begin construction of four power plants worth more than Bt20 billion in three industrial parks, Amata Nakorn, Amata City, and Hemaraj Chon Buri. B Grimm Power’s revenue is targeted at Bt19 billion – an increase of 32 per cent from 2013.

In its second-biggest business, building and industrial systems, B Grimm raised revenues to more than Bt4.7 billion last year and will further expand through an investment with United Technologies (UTC) in Chubb Direct, a supplier of building security systems.

B Grimm will also begin distributing air-conditioning products from UTC’s Chinese partner Midea. With Carrier (Thailand) and the newly established B Grimm Carrier Ltd for the residential air-conditioner market in Thailand, the firm expects to continue the strong growth of sales of energy-efficient cooling systems from Carrier Corporation, which are manufactured by B Grimm Airconditioning.

Through Beijer B Grimm, the company is also a leading wholesaler of refrigeration and air-conditioning parts in Thailand.

In its healthcare business, B Grimm says it is continuing to grow strongly from total revenue of Bt3.5 billion last year through its joint-venture partnerships with global leaders Merck, Maquet and Carl Zeiss.

B Grimm expanded its transport business last year with an order for two modern Japanese-built bulk carriers, together with two partners. This year, B Grimm has added two more carriers to the fleet. The total investment is Bt5 billion.

"In view of the upcoming Asean Economic Community, B Grimm plans to increase its business in the Asean countries," Link said.

B Grimm’s total assets, mainly in the power sector, expanded from Bt23.7 billion in 2010 to Bt43 billion last year, with profits after tax at 8 per cent of revenues for the last four years. The company’s total staff also jumped from 1,293 people in 2010 to 1,728 this year.

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