Asia Green banks on China

SET-listed coal trader Asia Green Energy (AGE) expects sales to grow by 30% this year thanks to inroads its made in the Chinese market.

Chairman Apisit Rujikeatkamjorn said the company yesterday set up a coal trading business in China with a local coal trader, Fuzhou Xindian Fuel Co.

It is a 50:50 shareholding joint-venture, with the head office is located in Fujian.

The partners were also expected to set up two other new firms, which they have yet to be named.

The signing ceremony was held yesterday in Bangkok and Asia Green aims for the new joint-venture to help increase its coal trading volume in China to 1 million tonnes this year. That would help push total coal sales volume to grow 30% to 3 million tonnes in 2017, he said.

Business operations are expected to start as soon as the new firm is registered in China. Capital registration is set at 20,000 Chinese yuan or 102 million baht.

Fuzhou Xindian has strong expertise in the coal trade industry and a solid network in China, which would help increase the company’s competitiveness, said Mr Apisit.

Last year Asia Green’s total trade volume was 2.3 million tonnes. Of the total, around 70% was for the domestic market and the rest for demand overseas.

For the domestic coal market, Mr Apisit said he expects to see no change, with demand staying at 20-21 million tonnes, largely on account of further delays in the development of a coal-fire power plant in Krabi.

“The new joint-venture will help synergise our coal business to serve rising demand,” said Mr Apisit.

China’s coal demand stands at 4 billion tonnes a year, 90% of which is mined domestically, with the remaining amount being imported.

Panom Kuansataporn, executive board chairman, said global coal prices have bottomed out and are now recovering, supported by strong demand in China.

AGE shares closed yesterday on the SET at 1.61 baht, up one satang, in trade worth 918,000 baht.