Electricity Generating Public Company Limited (EGCO) is one of Thailand’s leading power producers which also owns and operates an IPP coal-fired power plant. EGCO expected that coal could bring a material security to the company, therefore it decided to acquire an Indonesian coal mine to reinforce its coal-fired power plant unit.
Unfortunately, several coal-fired power stations have been cancelled as local people opposed the project, for example, Bo Nok coal-fired power plant in Prachuap Khiri Khan Province. Moreover, EGCO doesn’t expertise in coal mining and the coal use is now facing a long-term decline…
Well it seems difficult to sell this business sector…but, EGCO is ready to sell it anyway. If EGCO continues to keep this business, the company will be forced to impair its assets like in the case of PTT Exploration and Production Public Company Limited (PTTEP) which had to recognise an impairment loss on Mariana Oil Sands Project in Canada in 2017 of approximately USD 550 million or 18,205 million baht. And it could cause a huge loss for EGCO.
Hence EGCO must eliminate the weakest link…!!!
After getting the weakest link out of the firm, EGCO lately has prepared to convert its former power plant in Rayong to be an industrial estate, “EGCO Rayong Industrial Estate” in order to add value to the organisation. EGCO Rayong Industrial Estate is planned to develop into a smart industrial estate to serve rising investment in the Eastern Economic Corridor (EEC).
EGCO also has other one major developing project, “Solar Solution Provider”, a project to provide a renewable energy advice service such as solar panel installation and maintenance for industry.
However, EGCO is far behind in the race, unlike Ratch Group Public Company Limited (RATCH), which has already expanded its investment continually, e.g. a joint venture between RATCH, BTS Group Holdings Public Company Limited (BTS) and Sino-Thai Engineering and Construction Public Company Limited (STEC) to develop infrastructure projects and elevated rapid transit projects.
Recently, RATCH has joined hands with ALT Telecom Public Company Limited (ALT) to invest in fiber networks and micro ducts through underground pipelines on three main roads.
If RATCH is a hare…then EGCO is just a tortoise that is always being slow…