Thailand’s PSG Corporation makes move into energy, natural resources
PSG Corporation (PSGC), an integrated construction services provider, is accelerating its diversification into energy and natural resources, with the aim of becoming a regional leader with annual revenue of 20–30 billion baht by 2035.
“PSGC is leveraging growth opportunities across the CLMV [Cambodia, Laos, Myanmar and Vietnam] region, supported by capital restructuring to strengthen its financial foundation,” said David Van Dau, chief executive of PSGC.
“Although construction and engineering are our core strengths, we don’t want to limit the company to these businesses alone because their competitive advantage is relatively low. We need to diversify into sectors where we can be a developer or an owner.”
PSGC is currently the lead contractor on two major construction projects in Laos that form the basis of the company’s broader expansion plans, he said.
The first is the XPPL Expansion Phase 1 project, worth US$239.9 million (around 8 billion baht), involving road construction, warehouses, and permits in southern Laos. The project is now 81% complete and set for delivery in 2026. The second is the 5-billion-baht Resettlement Development Site Project in northern Laos, creating new communities and infrastructure, with progress having reached 21% at present, and a completion target of 2027.
“With this momentum, we are pursuing a new vision to become a top-tier regional developer of natural resource and energy-based projects,” Mr David said.
The company plans to expand with new projects in Laos, including the Xekong Thermal Power Plant (XTPPL), a 1,800-megawatt power plant with an integrated mine and a 253-kilometre transmission line to the Laos–Cambodia border, and a mineral and ash conveyor system to support XTPPL. Both are scheduled to become operational from late this year to early 2030 and could more than double PSGC’s construction backlog.
PSGC is piloting mine operations in Laos, evaluating two sites with an operational model expected by the end of this year.
The company’s energy strategy includes converting hydropower plants into pumped storage hydropower under a memorandum of understanding with Electricité du Laos, integrating solar and wind to strengthen grid stability, and exploring hybrid systems. It is also studying a 10,000-MW solar farm in Attapeu and planning cross-border electricity exports to Cambodia, Singapore and China.
“Our sights are firmly set on regional expansion,” Mr David said.
By 2035, PSGC targets 10% of future revenue to come from construction and engineering, 30% from energy, and 60% from natural resources across China, Laos, Vietnam, Cambodia, Thailand and Singapore.
Somruedee Halilamien, PSGC’s chief financial officer, added that PSGC recorded revenue of over 642 million baht and net profit of 98.8 million baht in the first quarter of this year, with a backlog exceeding 5 billion baht through 2027.
The company is implementing a capital reduction and share consolidation to enhance transparency and attract institutional investors.
Source: https://www.bangkokpost.com/business/general/3074062/psgc-makes-move-into-energy-natural-resources
