Pruchya Piumsomboon, Ph.D., P.E.
Chairman of the Board of Directors
The year 2019 records a milestone when CHOW Steel Industries Public Company Limited has adjusted a crucial business strategy and structure in particular the manufacturing and distribution of steel billets which is our core business. Upon trust from our customers on the Company’s extensive experience in business plus our manufacturing plant which produces a globally recognized quality products, the Company has established the OEM service to fabricate steel billets based on the OEM agreement for major customers with capacity 400,000 tons per year for 10 consecutive years to stabilize revenue and avoid risks in a fluctuation of raw material prices. Accompanying with our existing assets and manufacturing plants which are the tool to generate revenue and to maximize benefits, the OEM business embarks a new dimension that will strengthen the growth of steel business in the future. Throughout the year 2019, the Company has improved and developed a manufacturing processes in the plants, including machinery during phase 2 to accommodate the OEM business. The operation was completed in the 4th quarter of 2019, while the production line was eventually commissioned to accomplish commercial production by the first quarter of 2020. This will mark the start-up the growth of steel business with secured revenue and free of risks from the fluctuation of steel price and raw materials as we experienced before.
On the other hand, the alternative energy business gains the raise as a target, in particular the solar power plants in Japan in which we continually develop the projects and operate a business as planned. In 2019, the alternative business generated an increase of revenue from sales of electricity compared to the previous year. CHOW has disposed another 5 solar power plants of which the development is completed to the infrastructure fund in Japan in response to the policy that aims to add value to assets to yield the profit, preparing a cash flow for a new investment on alternative energy in the future. In addition, the Company has broadened the alternative energy business to Australia following the business expansion plan in which expected to return a lucrative income as the alternative energy business in Japan.
The shift of business orientation in the previous year reflects the determination of the Management and the Board of Directors who have mutually defined strategy and business plan to meet the actual situation as to bring about sustainable growth which is the Company’s goal. Every member of the Board of Directors, Management and employees are eager to be a part that accomplish business success of the Company, with more stability and driving steel business toward a vigorous direction, free of uncontrollable external factor. For instance, an outbreak of a new coronavirus 2019 (COVID-19) which currently become an impending situation. Meanwhile, the expansion of the solar power plant business to other markets is well progressed with upside effect and profitable for investment. In addition, the Company always seeks for an opportunity to invest in other businesses in which will enhance the strength of the business in a long term.
On this occasion, I on behalf of the Board of Directly giving my appreciation to the Management and all employees for your partnership and endeavor for challenges until the Company has passed the interruptions. My thankfulness thought also goes to all shareholders, business alliances for your trust and support in the Company business throughout the year in which the Company has accomplished its vision, goals, policy under the good corporate governance for the highest interest of all stakeholders.