Dec 24, 2012

Biofuel plant for Myanmar

The MAI-listed Universal Adsorbents & Chemicals Plc (UAC) plans to invest in a new 800-million-baht alternative biofuel energy project in Myanmar expected to start operating in 2014.

Chief executive Kitti Jivacate said the company will enter the project with a Myanmar partner that will own a 20% stake.

The biofuel plant will be located on Myanmar's Song island near Thailand's Ranong province. The project will use palm oil as its raw material.

The proposed local partner is one of the biggest business groups in Myanmar, and a contract will be signed next year.

The project will start by 2014, with the electricity output sold in both Myanmar and Thailand.

UAC previously announced its investment in two water-treatment projects in Myanmar through its UAC Hydro Tech Co subsidiary.

One is valued at 300 million baht and planned for Mandalay, while a 600-million-baht facility will be in Yangon. Both will be built next year and start receiving revenue in 2014, with 300-400 million baht annually expected.

UAC will also open a representative office in Myanmar to supply chemical and power plant equipment.

The company expects revenue growth of 20% next year thanks partly to revenue realised from its compressed biomethane gas project.

After 2013, annual revenue should double, half of it generated from alternative energy.

Mr Kitti said the operating net profit will also improve, as the company will receive tax privileges from two new power plants located in industrial zones in Sukhothai and Chiang Mai provinces.

UAC plans to double its paid-up capital to 500 million baht in the next three years to serve its major investment plan.

For the first nine months of this year, UAC achieved sales of 625 million baht, down by 5.34% year-on-year, for a net profit of 103 million, up by 31.6%.

UAC shares on Friday closed on the MAI at 7.65 baht, down 15 satang, in trade worth 14.6 million baht.

Source: Bangkok Post