Rolls-Royce (Thailand) sees great potential for reinforcing its local power business in the Energy Ministry's plan to purchase 2 gigawatts from small power producers.
"We have a strong footprint, but we have a lot of good products to offer. We want to be very active to expand the footprint," managing director Ewen McDonald said in a recent interview.
Compared to GE Energy, Rolls-Royce has been far less active. While GE Energy has won major deals from several power project developers, including the Electricity Generating Authority of Thailand, Rolls-Royce is more involved in the supply of engines to support oil and gas exploration.
McDonald, who began his three-year term a few months ago, is convinced that the SPP project will present an opportunity for the company to open the market wider. The range of the company's products - Trent energy engines - are well-suited to SPPs, or power plants with a capacity of 130-150 megawatts.
Rolls-Royce is now engaged in several discussions on the supply possibility, he said. The SPP scheme means anyone can bid to produce and sell electricity to the government.
While several power plants are facing resistance from people living near proposed locations, all the potentially new operators are well aware of that, he said. However, the tension could ease, once the National Environment Board officially announces the list of harmful activities - which will serve as a new regulatory benchmark.
McDonald is ready to support the country's alternative energy development policy. UK-based Rolls-Royce's energy products are also involved in other energy fields. The company is very active in nuclear power in the Middle East, India and Europe.
In Thailand, 80 per cent of Rolls-Royce revenue is generated by the civil aviation business, compared to 50 per cent in Rolls-Royce's global accounts. Now, 45 per cent of engine orders come from airlines in Asia and the Middle East. In the past 15-20 years, the company has witnessed phenomenal growth in business in the region, particularly in Singapore, Thailand, Indonesia and Malaysia, but mostly in the aviation field. Meanwhile, the energy business is demonstrating expansion.
In Thailand, its counts Thai Airways International, Thai AirAsia and Bangkok Airways as clients. THAI's fleet is now powered by about 100 Trent engines.
To nurture the aviation business, Rolls-Royce is now sourcing for parts from Southeast Asia. Three suppliers have been identified in Thailand so far, and McDonald is looking to double that figure within 12 months.
Thailand has good potential to meet the company's strict demands, given its expertise in the automobile industry, which could be developed to match the requirements in the aero industry, he said. It should make Thais proud of having a part in making engines that run a Thai aircraft.
"My job is to benefit Thailand," he concluded.