Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company
Limited (PDI), announced that the PDI’s Annual General Meeting of Shareholders 2016,
approved to divert the Company’s main business from conventional zinc operations to
green business, creating sustainable income. This decision is probably one of the most
important milestones in the lifetime of the company. The company will deploy its strategy
through its 3 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 has carefully studied how to assure the continuation of its zinc business after the
depletion of its only Mae Sod Zinc mine in 2016, in a profitable way, with acceptable returns
for all our stakeholders. Once PDI’s Mae Sod mine will be fully depleted, the continuation of
the conventional Zinc business will solely depend on imported ores. These highly expensive
imported ores would fully replace the Mae Sod low cost supply, resulting in a sharp increase
of operational costs, largely exceeding revenues, hence PDI might generate continuous
losses. The continued low global zinc prices and the shrinking Thai industrial demand will
further reinforce this. Assessments show no significant improvement in either the global
zinc prices or the Thai economic situation in the relevant markets.
After the Mae Sod 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 company will speed-up the investment program in the make-over of the
company into sustainable businesses such as but not limited to renewable energy, recycling,
waste management and value added products from metals. The supporting strategic
business plans have been deployed, and will be balanced between green-field start-ups and
M&A targets. Due to the economic slowdown PDI will focus on robust targets with strong
growth potential, rather than quick fit