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Canadoil to Invest 1bn Baht in Rayong Expansion
(Business Day, 20 October 2004)
Canadoil Asia, which converts natural gas into liquefied natural gas (LNG) will invest another billion baht for expansion at its plant in Rayong.
The announcement follows hot on the heals of the Canadoil Group's recent investment of 7.5 billion baht for the Canadoil Pipe manufacturing plant which is currently under construction next to Canadoil Asia's factory in Amata City, in Thailand's Eastern Seaboard industrial estate.
Canadoil announced that the one billion baht expansion of its manufacturing facilities in Rayong will allow Canadoil Asia to cater to the growing domestic and foreign LNG market.
The new facilities will be built separately from the existing ones as the new plant requires an area away from the original site.
Because of the specialised processes involved in the construction, the new stainless steel plant will be completely separate from Canadoil Asia's existing pipe-fittings factory, the company said in a statement.
Canadoil's management has recognised that the demand for LNG will increase in the coming years as countries rely less on oil to meet their energy needs and look for cheaper alternatives.
In particular, the demand for LNG will become even more acute in North Asian, especially Japan, Korea and Taiwan which all rely heavily on oil imports.
When fully operational, the new plant is forecast to double Canadoil Asia's current annual revenue.
Giacomo Sozzi, the managing director of Canadoil Asia and Canadoil Pipe said the company will continue to expand its operations in Thailand and will also look for other markets where Canadoil's products and services are required.
"The growing Asian and global demand for LNG is the catalyst behind our decision to expand our manufacturing capabilities here," he said.
Canadoil, which has bases in Canada, the United States and Venezuela, chose Thailand as its principal base of operations in Asia because of the country's close proximity to the Middle East and its ability to supply the fast growing Asian oil and gas industry.
Currently, the group employs 900 people in Thailand, a figure that is expected to reach 1,500 when Canadoil Pipe starts its operations in 2005
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