From zinc to green business
Padaeng Industry’s shareholders last month made a crucial decision: they approved the company’s new strategy to create sustainable revenues and profit from green business after decades of cashing in on zinc mining.
Managing director Francis Vanbellen admitted the decision is probably one of the most important milestones in the lifetime of the company. It emerged after a study that portrays a dismal future after the depletion of its only Mae Sot zinc mine this year. This meets with continued low global zinc prices and the shrinking Thai industrial demand. After the Mae Sot mine closure this year, the Rayong plant will cease operations by the end of 2016. The zinc smelter in Tak will limit its operations by the end of 2016, to produce only zinc metal and alloys until the end of 2017. All supporting and corporate functions at the Bangkok office will be gradually aligned with the remaining operational activities in Tak and Rayong and with the new investments.
The new strategy requires the deployment of three business groups. PDI Energy providing energy from renewable energy resources; PDI Eco-providing eco-management services for waste; PDI Materials providing high value added materials from recycling.
PDI Eco intends to invest in sustainable industrial waste management business at its Tak location. Negotiations have been finalised with an overseas leading waste management company to co-invest in the treatment of (non-)hazardous industrial waste for the North of Thailand. Technologies have been identified and the legal and permitting hurdles are under review on expectation that the Industrial waste management facility will go life by the end of 2018.
The group is also invited to bid for sustainable treatment of municipal household waste in Tak, which can be operational by the end of 2017.
