CPT lands 22 sawmill deals with total value of B1.32bn

SET-listed CPT Drives and Power Plc, a power systems service provider, has reached a cumulative 1.32 billion baht in sales contracts from 22 deals with sawmill operators in the southern region.

The contracts cover sales and services for providing design, engineering, procurement and construction of high-efficiency power feeding systems.

All the contracts have three-year terms. Chief executive Somsak Limprasert said all contracts are awarded through a subsidiary, CPT-TTG Innovation Co, a joint venture between CPT and Thai Turbo Generator Co, a biomass construction and service provider firm.

CPT owns a majority stake of 60%, with the partner holding the remaining 40%.

Mr Somsak said CPT-TTG Innovation is involved with waste from the sawmill production process, such as wood chips, which are used for clean power generation or biomass systems.

“A massive quantity of wood chips will come from 300 units of sawmill facilities in the region, which complements the company’s biomass project engineering expertise,” he said.

Mr Somsak said the sawmill operators will have their own power generation system for internal usage, replacing the electricity provided by state utilities, allowing them to reduce their power bills by 20-25 million baht annually after installation.

While Mr Somsak did not disclose the total capacity of each power generation unit, he said the biomass facilities could help avert a power supply crisis in the South.

Mr Somsak said the contracts will showcase new technology for biomass co-generation power plants, which have a capacity of one megawatt and are more efficient than traditional biomass projects.

All contracts will consist of three phases. The first phase will see the construction of two biomass construction jobs, together worth 120 million baht, that will start in the third quarter and be completed by next March.

The second and third phases are for sales and instalment, respectively, through financial lease terms.

The second and third phases will each have 10 projects worth 600 million and another 600 million baht, and will span from the end of this year to next year.

Mr Somsak said there is plenty of room for biomass power generation at an additional 50 projects because agricultural processes have vast volumes of waste, worth at least 3 billion baht at rice mills and oil palm crushing facilities.

Separately, CPT announced that it has sales offices in Indonesia, the Philippines and Vietnam to tap rising demand.

CPT expects to earn 500 million baht in revenue from overseas markets in 2020, representing 25% of total revenue, up from 10% last year.

CPT shares closed yesterday on the Stock Exchange of Thailand at 2.84 baht, down four satang, in trade worth 62.1 million baht.