INTEGRITY QUALITY SERVICE - Saha-Union Co., Ltd

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SAHA-UNION
SAHA-UNION PUBLIC COMPANY LIMITED
ENERGY BUSINESS
TYPES OF PRODUCTS OR SERVICES
The Company has invested in the energy business, which
can be divided into 2 parts:
1. Power plant projects in China: Currently, the Company
has joint venture with 6 Chinese enterprises, comprising
one cogeneration power plant in Jiangsu, two in
Zhejiang and one in Heilongjiang, one hydro power plant
in Yunnan, and the Yunnan Energy Luliang-Union, which
has been changed to a cogeneration power plant.
2. Power plant projects in Thailand: The Company has
made an investment under the “Independent Power
Producer (IPP)” project for Ratchaburi Power Co., Ltd.
to produce and supply electricity for EGAT.
SUPPLY OF MATERIAL FOR PRODUCTION
OR SERVICE
Coal mainly supplied from the northern and northwestern
part of the country is used as the main raw material in the
cogeneration power plants in China. The plants have entered
into buying and selling agreements with coal mines. For
the hydro power plant in Yunnan province, water supply
comes from the river in the mountains running down through
a tunnel and into the power generator. For power plants in
Thailand, natural gas in the Gulf of Thailand is used as the
energy material.
PERFORMANCE IN 2011
Power Plant Projects in China
Thermal power plants were still pressured by the slow pace
of Chinese economy because of sluggish exports due to
the world’s economic downturn. The Chinese government’s
attempt to solve inflation also caused a diminishing growth
in electricity demand. Moreover, the imbalance between
electricity price and coal price had an effect on the overall
performance of power plants. Most joint venture power
plants were cogeneration power plants, which also sold
thermal energy in the form of steam. An increasing demand
for steam from industrial plants helped alleviated the effect.
Therefore, the power plants that sold a high proportion of
steam still had satisfying operating result while the power
plants that sold electricity at a high proportion but only a
small proportion of steam faced a decrease in operating
result in 2011.
In 2011, Yunnan Energy Luliang-Union Power Co., Ltd. in
Yunnan province turned to the cogeneration format like
those in Zhejiang and Jiangsu and has started to operate.
Many businesses were moving to settle their factories in the
nearby industrial estate resulting in higher need for steam.
However, it might take some time before the increase in
steam demand meets the full production capacity.