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11 September 2014

RATCH-CHOW jointly invests in solar farms in Japan

RATCH-CHOW jointly invests in solar farms in Japan
Initiating 2 projects with total capacity of 33 MW and COD in 2016,
Entering shareholding agreements to establish 2 jointcompanies


Nonthaburi - Ratchaburi Electricity Generating Holding Public Company Limited (“RATCH”) and CHOW Steel Industries Public Company Limited (“CHOWSteel Group”) stated that both companies reached partnership for jointinvestmentin solar power projects in Japan. On September 12, 2014, subsidiaries of both parties signed the shareholders agreements to establish two jointventure companies which were held 60% stake by RATCH and 40% stake by CHOW Group. The said two joint venture companies as an investment armwillinvest in solar power projects in Japan.The initialinvestment phase will cover two projects with 33 megawatts total dispatched capacity when the commercial operation date (COD) is scheduled in 2016.

Mr. PongdithPotchana, Chief Executive Officer of RATCH, revealed that the agreement signing marks substantial progress for RATCH striving to be a leading integrated energy company in Asia-Pacific under the business strategies to seek partners for enhancingour potentiality and competiveness, coupled with expanding into new markets. Japan is also one of our targeted investment destinations, particularly for renewable energy business. It is obviously shown that the Japanese government currently agrees to purchase 7,000 megawatts electricity generated from solar energy.

“Partnering with CHOW Steel Group that has extensive experience and expertise in doingbusiness in Japan will helpincrease our businessopportunity andcompetitiveness. Thecommon aim to expand renewal energy investment also helps drive ourco-invested solar powerprojects in Japan toward success. The 33 megawatts dispatched capacity of two solar farm projects is initiated withcommercial operation in 2016. The Company strongly believes that both partners will be able to develop and extend cooperation in other projects in the second phase,” Mr. Pongdith added.

Mr. AnavinJiratomsiri, Chief Executive Officer of CHOWSteel Group,disclosed that this partnership between CHOW Steel Group and RATCH Group is considered to be another significant step in expanding the renewable energy business to Japan where there are great opportunity and potential investment. According to the Japanese government’s intention to increase the solar power production capacity, Japan is regarded as attractive destination for renewable energy investment frommost international investors. We believe that the synergy between the two parties will enhance our competitive advantages and accomplish ultimate goal as targeted.

Both parties join handsto invest in Ueda Solar Farm Project located in Nagano prefectureand Iwaki Solar Farm Project in Fukushima prefecture withdispatched capacity of 10.8megawatts and 22.6 megawatts respectively. The 20-year Power Purchase Agreements (PPA) of those two projects are made with majoroff-takers of the region andgranted JPY40feed-intariff per unit (excluding consumption tax) from the Japanese government that will strengthen the cash flow of both companies more steady and stable.

The joint venture is made through their subsidiaries by signing shareholders agreements in order to establish two joint venture companies as an investment arms in the above mentioned projects in Japan. It includes a joint company between RH International (Singapore) Corporation Pte. Limited (RHIS) owned 60% equity and ChowInternational Company Limited (CI) with 40% stake, with an aim to invest in solar farm projects in Japan, and a management service provider company co-owned by Ratchaburi Energy Company Limited (RE) with 60% equity and Premier Solution Company Limited (PSCL) with 40% stake.

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About Ratchaburi Electricity Generating Holding Public Company Limited
Ratchaburi Electricity Generating Holding Public Company Limited is a leading energy company in Thailand, with investment in Thailand and abroad, including IPPs and SPPs in Thailand, renewable projects in Thailand,international projects and related business such as operations and maintenance business, coal mining, distribution system, fuel supply provider, etc.RATCH currently accounts the total installed capacity of 6,543 megawatts deriving from operating and developing projects of 4,834.05 megawatt IPPs and SPPs in Thailand, 102.45 megawatt renewable projects domestically and 1,606.02 megawatt internationally projects.The Company has aimed to grow sustainably by creating higher enterprise valueto BHT282 billion in 2023or equivalent to total installed capacity of 9,700 megawattsfrom the current value of BHT118 billion.

Chow Steel Industries Public Company Limited
Listed on mai, Chow Steel Industries Public Company Limited or CHOW is Thailand’s major producer of steel billets, with quality that meets internationally standards. The steel billets can be rolled into long products such as round bar and deformed bar in order to use as main construction material for home, commercial building, bridge, dam, flyover and skyscraper building.CHOW’s factory located in Kabinburi Industrial Estate, Prachinburi province, has received the investment promotion from Board of Investment (BOI). The maximum production capacity is 730,000 tons per year, with production capacity during off-peak period of 450,000tons per year. In addition, CHOW began to enter into renewable energy business in 2013. 

For further information, please contact

  • Ratchaburi Electricity Generating Holding PCL.
    - WiwanPhayakvichien : Tel. 0 2794 9941

  • CHOW Steel Industries PCL.
    - Sirirat Khongpeng : Tel. 08 1427 3834