Thai transmission tower maker to buy two biomass plants for $25.46m
Ua Withya, a Thailand-based transmission line tower manufacturer, has approved the acquisition of two biomass power plants in the Buriram province for around $25.46m.
According to local news website Deal Street Asia, the power plants, Advance Bio Power and Satuk Biomass, have a combined generating capacity of 17.4MW, which will enhance UWC's total capacity to 48MW.
UWC managing director Peratus Dhanarachwattana told Deal Street Asia that it would hold 99.99% stake in both power plants.
"This deal is part of our plan to generate 60% of our revenue from power plants and 40% from high-voltage transmission tower production," Dhanarachwattan told the website.
UWC's core business was previously to produce and supply high-voltage transmission tower.
Due to the delay of the country's infrastructural investments, it has decided to fully diversify into renewable energy and power plant business, according to Deal Street Asia.
In 2015, it acquired a 9.9-MW biomass power plant in Nakhon Ratchasima. The plant, which has started selling the electricity to the Provincial Electricity Authority since December, is expected to make over 200 million baht ($5.5m) in revenue this year.