Kanyong in Bt2.3-bn Bahraini JV
New company to turn waste into power
Akram, left, and Praphad in Manama, Bahrain last week.
With an investment of Bt2.3 billion, Kytbw Co Ltd has become the first Thai company to secure a toehold in Bahrain.
Praphad Phodhivorakhun, president of the Thai company, said here that Kytbw planned to set up a 50-50 joint venture with a Bahrain conglomerate, Promoseven Holdings Ltd, to invest in a waste-based power-generating business in Manama. The project is worth US$120 million (Bt4.6 billion).
"The joint venture should be formed soon and the construction of the plant should be kicked off within the next nine months," he said.
Kytbw is a joint venture between Kanyong Group, which owns 51 per cent of the company, and UK-based Intensified Technologies Incorporated (ITI) Ltd, which owns the rest. Kytbw is spending Bt500 million to produce equipment that enables the generation of gas and electricity from waste.
Under the deal with Promoseven Holdings, Kytbw will supply technology and equipment to the joint venture firm in Bahrain, while Promoseven Holdings will support the marketing plan in Bahrain.
Praphad said that if the project in Bahrain succeeded, he would expand the business to other countries in the Middle East, which has experienced a sharp increase in purchasing power commensurate with the spike in oil prices.
"This project shows the capacity of Thai industry to develop innovative technology," Praphad said, adding that the equipment from his company was manufactured by order only.
Praphad said that the company's waste energy system could turn all types of waste, excluding steel, glass and stone, into electricity or gas.
The energy waste systems will be located in small plants. One plant has the capacity to turn one tonne of waste into 1.25 megawatts of electricity - enough to keep a small manufacturing plant or a small village running.
Akram Miknas, chief executive of Promoseven Holdings, said that the system would be good for for Bahraini company's that produce waste during their manufacturing processes.
"If our joint venture firm succeeds, this could lead to more joint investment with Thai partners in the future," he said.
Promoseven Holding is part of a Bahrain conglomerate, which has its fingers in real estate, construction, tourism and manufacturing. The group has business in several countries in the Middle East - Dubai, Kuwait and Saudi Arabia - and Australia.
Kytbw was established two years ago. Last year, it started building a Bt500-million manufacturing plant, slated for completion this year. The plant will have a production capacity of 4,000-5,000 pieces of electricity energy waste equipment a year, most of which will be exported. The company to date has clinched three deals worth nearly Bt10 billion to export the equipment to several countries including China, Timor and Bahrain.