Toyo-Thai Corporation (TTCL) is seeking opportunities in Myanmar’s power business through the establishment of two joint ventures in that country.
One of the JVs will have Thai Summit Group as a partner.
The expansion follows a memorandum of understanding signed with Myanmar’s Ministry of Electric Power on August 10, which paved the way for greater collaboration for developing a 100-megawatt power plant in Yangon.
The integrated engineering firm said on its website that it “is optimistic about its overseas expansion plans after the company signed the MoU”.
“The agreement was made possible through the company’s solid experience along with its close ties with the Myanmar community, in which Toyo Thai-Myanmar Corp (TTMC), a subsidiary of TTCL, was established last year,” the company said.
“At present, the company is training 30 Myanmar engineers at its Bangkok head office and plans to employ 50 Myanmar engineers for preparation of future operations.”
In a filing to the Stock Exchange of Thailand yesterday, TTCL said its board of directors had approved the establishment of Toyo Thai Power Corp in Singapore (TTPSG) as a 60:20:20 joint venture with 8 Coins Capital and Pacific New Power. The joint venture will be capitalised at US$42.5 million (Bt1.32 billion).
Through TTPSG, it will set up a 50:50 joint venture in Myanmar to operate a power plant. The company will be capitalised at $500,000.
Another 40:60 joint venture will be established in Myanmar to invest in the power business. With Thai Summit Group holding 60 per cent, Thai Summit-TTCL Power Co will be capitalised at Bt1 million.
TTCL, the first all-around engineering company in Thailand, was incorporated in 1985 by a joint venture of Italian-Thai Development, one of the biggest contractors in the country, and Toyo Engineering Corp, a leading international engineering company in Japan.
In the third quarter of this year, Toyo-Thai reported net profit of Bt151.4 million, 16.6 per cent higher than the same period last year. In the first nine months, its net profit reached Bt341 million.