Published on 23/04/2014
Gunkul plans B4.2bn outlay
The SET-listed Gunkul Engineering Plc, a maker and distributor of electrical products and renewable energy, will spend 4.2 billion baht on gas-turbine engine and wind energy projects this year.
Wind turbines have been installed at Laem Chabang port in Chon Buri as part of plans to become a green port. The turbines produce electricity for use around the port, for streets and warehouse lighting. Gunkul Engineering is planning a 60-MW wind farm in Nakhon Ratchasima.  PATTANAPONG HIRUNARD
Managing director Soomboon Aueatchasai said the gas-turbine engine investment is the second phase of production located in Myanmar in which it joins with a local partner to build a 25 megawatts of gas-turbine power generation, equal to the first phase. Gunkul owns 51% of the Myanmar operation, with local partners the rest. The second phase of the gas-turbine energy project will begin investment in second half this year, with construction slated to finish at the end of next year.
The wind power project has a planned total capacity of 60 MW located in Nakhon Ratchasima. Gunkul will invest 70% for this project, with 30% held by an unnamed Thai partner. Mr Somboon said it is considering its financial options for the 4.2 billion baht in funding including bank loans, equity from a partner or setting up an infrastructure fund. Gunkul has aggressively expanded its renewable energy projects since 2012 in a bid to have renewable energy account for most of the company’s net profit in years ahead, said Mr Somboon. The company entered Myanmar in 2012 to invest in three wind energy projects with a combined capacity of 1,000 MW but found wind speed unsteady at the project locations, leaving these projects pending. Its revenue target this year is 3 billion baht — half from construction and half from trading — while revenue from renewable energy amounts to more than 200 million baht. Mr Somboon said the net profit structure this year is 50% from core business and 50% from renewable energy, rising to 70% energy in three years. Gunkul agreed yesterday with WHA Corporation, the build-to-suit warehouse operator, to set up four subsidiary companies to operate solar PV rooftop projects with a capacity of 3.299 MW. The project has a 25-year agreement with the power authority to sell power at 6.60 baht per kilowatt-hour. Shares of GUNKUL closed yesterday on the SET at 13.10 baht, unchanged, in trade worth 22.8 million baht.